Oil prices react to peace talks on Ukraine
29 December 08:21
Global oil prices showed a moderate increase after the US negotiations to end the war in Ukraine. At the same time, the market continues to move toward the fifth consecutive monthly drop in quotations, which could be the longest period of decline in more than two years. This is reported by Bloomberg, "Komersant Ukrainian" informs
According to the publication, the price of Brent crude rose above $61 per barrel, while West Texas Intermediate futures were trading near $57. The rise in quotations came amid U.S.-led negotiations, but they did not bring the expected breakthrough to end the war in Ukraine.
Despite diplomatic efforts, reaching an agreement is complicated by significant differences between the parties. US President Donald Trump said that during his meeting with his Ukrainian counterpart Volodymyr Zelenskyy in Mar-a-Lago, “significant progress” was made, but the negotiation process will continue.
At the same time, the oil market remains under pressure in December. Prices are still headed for their fifth consecutive monthly decline, the longest streak of declines in more than two years. The main factor remains the risk of a global oversupply caused by rising production both within OPEC and outside the cartel.
Geopolitical tensions in countries such as Venezuela and Nigeria are partially restraining the decline in prices, but these factors are not able to provide sustainable support to the market.
“As for Ukraine, there is no breakthrough yet. It seems that there are still long diplomatic maneuvers ahead,” said Gao Mingyu, chief energy analyst at China Futures Co. Gao Mingyu, Chief Energy Analyst at China Futures Co. pointing to the complex issues related to the future of Donetsk region.
China’s position attracts additional attention from investors. Beijing has announced its intention to expand budget spending in 2026, which confirms the authorities’ desire to stimulate economic growth. The world’s largest importer of crude oil is currently facing a downturn in the real estate market and external pressure, including trade disputes with the United States.
China’s active build-up of strategic crude oil reserves is expected to continue, which may help stabilize prices even in the face of oversupply on the global market.
Earlier it was reported that oil quotations received support amid tougher US actions against the naval blockade of Venezuela, as well as after the attack of Ukrainian drones on a Russian tanker in the Mediterranean.
