Oil Holds Two-Day Gain With Focus on Ukraine Talks and Surplus
Oil held a two-day advance as investors weighed the outlook for a ceasefire in Ukraine, and signs of a swelling global surplus.
Brent traded above $63 a barrel, almost flat for the week and barely moving on Friday. A peace deal remains elusive as Ukrainian negotiators head to a new round of talks in Florida, with Russian President Vladimir Putin objecting to some of the points in a US-backed plan.
The market is watching for progress on a settlement that could potentially ease sanctions and boost Russian oil flows, though an agreement appears distant at this stage. Reports that Washington lobbied European countries in an effort to block a European Union plan to use Moscow’s frozen assets to back a massive loan for Ukraine further clouded the outlook for a resolution.
Oversupply is putting pressure on prices globally. Saudi Aramco will reduce the price of its flagship Arab Light crude grade to the lowest level since 2021 for January, while Canadian oil has tumbled.
Meanwhile, traders are also focused on Russia-India talks after Putin arrived in New Delhi for his first state visit to India since the full-scale invasion of Ukraine. India, a major buyer oil Russian crude, said its oil imports are based on commercial considerations and market dyanmics.
Brent for February settlement was little changed at $63.25 a barrel at 1:56 p.m. in London.
WTI for January delivery was broadly steady at $59.63 a barrel.
Source : Bloomberg.com
