Oil Prices Retreat, Geopolitics and Ukraine Deal in Focus
Oil prices slumped on Friday after the market digested positive news from Ukraine peace talks, indicating progress toward a deal that could open the door to more Russian oil supplies to the global market. West Texas Intermediate (WTI) fell slightly and traded around $58 per barrel, although it remained on track for its biggest weekly gain since late October. Meanwhile, Brent traded below $62 per barrel.
Ukrainian President Volodymyr Zelenskiy stated that he would meet with US President Donald Trump in Florida on Sunday to discuss efforts to end Russia's war. This meeting indicated that the framework for a peace agreement was nearing completion. However, despite the progress in Ukraine, its impact on oil prices was significant, outweighing the positive impacts of the blockade of Venezuelan crude shipments and the US military offensive against terrorist groups in Nigeria.
Although geopolitical tensions continue to influence oil prices, the market remains concerned about the global oversupply, which is expected to increase next year. Several analysts, including Kirill Bakhtin of BCS Financial Group, noted that while oil prices were boosted by strong US economic data and geopolitical instability, expectations of a supply surplus still weighed on the market. Furthermore, the weakening US dollar also supported oil prices, making them more affordable for foreign buyers.
Source: Newsmaker.id
