Oil prices are exploding: possible peace between Ukraine and Russia is putting pressure on the market
Фото: Reuters
Global oil prices fell to their lowest levels in a month yesterday, driven by forecasts of oversupply in the market and expectations of a possible peaceful settlement between Russia and Ukraine, which could affect production and export volumes.
It is noted that quotes showed a slight recovery after a sharp decline, Reuters reports .
Brent futures rose 0.43% to $62.75 a barrel, while U.S. West Texas Intermediate (WTI) added 0.41% to trade near $58.19 a barrel.
According to Priyanka Sachdeva, senior analyst at Phillip Nova, the current rise looks more like a brief technical pause:
“This is not a sustainable trend. Short-term upward moves may occur due to weaker inventory data and short coverage, but such impulses are short-lived and are not capable of turning the market around.”
Analysts note that the general mood of investors remains “bearish.” Forecasts for 2026 increasingly include a supply surplus, while there are no signs of strong demand growth – this is what continues to put pressure on the market and restrain a possible price recovery.
As a reminder, Russian budget revenues from oil and gas sales may decrease by approximately 35% in November compared to November of last year. Analysts note that the key factors were the fall in oil prices, the strengthening of the ruble, and the impact of sanctions.
As reported, about 48 million barrels of Russian oil could be stuck at sea for a long time due to new US sanctions against Rosneft and Lukoil . The restrictions have caused dozens of tankers to change routes and look for new buyers, especially after Indian refineries began to sharply reduce purchases.
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