Oil prices fall amid Ukraine peace deal reports
Oil prices extended an earlier decline on Tuesday, dropping by about 2%, after news reports cited a U.S. official saying that Ukraine had agreed to a peace deal.
Brent futures were down $1.22, or 1.9%, at $62.15 a barrel at 1417 GMT. West Texas Intermediate (WTI) crude was down $1.21, or 2.1%, to $57.63.
ABC News and CBS News reported that a U.S. official said Ukraine had agreed on the terms of a potential peace deal.
A Ukrainian official told Reuters that Kyiv supported the essence of a framework for peace after talks with the U.S. in Geneva, but some of the most sensitive issues of the framework remained to be discussed between the countries' presidents.
Ukrainian President Volodymyr Zelenskiy could visit the U.S. in the next few days to finalise a deal with President Donald Trump to end Ukraine's war with Russia, Kyiv's national security chief Rustem Umerov said.
"Some media outlets are reporting that Ukraine agreed to a peace deal," UBS analyst Giovanni Staunovo said. "That said, it needs two to tango, and it remains unclear if Russia agrees as well."
A Ukraine-Russia peace deal could lead to sanctions being lifted on Moscow, unleashing previously restricted oil supplies into the market.
Both crude benchmarks gained 1.3% on Monday as rising doubts about a peace deal reduced expectations for the unfettered flow of Russian crude and fuel supplies.
The overall outlook for crude oil supply and demand balances in 2026 is looser amid numerous forecasts that supply growth will exceed demand increases next year. Oversupply concerns have dampened market sentiment recently.
Source: Tradingeconomics.com
