Oil settles down 1%, focus on Russia-Ukraine peace talks, Fed
Oil prices edged lower on Tuesday after falling 2% in the previous session, with investors keeping a close eye on peace talks to end Russia's war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.
Brent crude futures settled 55 cents, or 0.88%, lower to $61.94 a barrel. U.S. West Texas Intermediate crude fell 63 cents, or 1.07%, to $58.25 a barrel.
Both contracts fell by more than $1 a barrel on Monday after Iraq restored production at Lukoil's West Qurna 2 oilfield, one of the world's largest.
Ukraine will share a revised peace plan with the U.S. after talks in London between its President Volodymyr Zelenskiy and the leaders of France, Germany and Britain.
Peace between Ukraine and Russia could lead to the removal of international sanctions on Russian companies and free up restricted oil supply.
On Tuesday, power was out for roughly half of residents in the Ukrainian capital Kyiv after the latest Russian attacks on the country's energy system.
Aiming to cut Moscow's oil revenue, the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban, sources familiar with the matter said.
Oil cargoes at sea, which have increased by 2.5 million barrels every day since mid-August and are still climbing, continue to put pressure on oil prices, said SEB's chief commodities analyst Bjarne Schieldrop.
"The only reason why Brent crude hasn't fallen faster and deeper is because of the U.S. sanctions related to Rosneft and Lukoil," he said.
Source : Reuters.com
