Ukraine Peace Stalls, Oil Prices Remain Depressed - What's Going On?
Oil prices fell slightly in Asian trading on Wednesday after dropping more than 1% in the previous session. The market is still digesting the results of high-level talks between the United States and Russia on efforts to end the war in Ukraine. Brent for February fell 0.3% to $62.24 per barrel, while WTI also weakened 0.3% to $58.44 per barrel.
A five-hour meeting in the Kremlin between Russian President Vladimir Putin and US envoys Steve Witkoff and Jared Kushner ended without an agreement. Although described as "constructive," Russia stated that disagreements over regions like the Donbas remain a major obstacle. Amid these diplomatic efforts, Ukraine continues to launch attacks on Russian energy infrastructure, looming over the market.
Tensions escalated further after Moscow warned that it could target ships belonging to countries supporting Ukraine. This threat followed a Ukrainian attack on a Russian ship, adding geopolitical risk to oil prices even as peace talks continue.
On the supply side, API data showed a decline in US crude oil inventories of 2.48 million barrels in the week to November 28. This significant decline typically supports higher oil prices because it signals increased consumption. However, market participants remain cautious as they await official data from the EIA, which will be released today, including reports on gasoline and distillate stocks. (asd)
Source: Newsmaker.id
