Oil prices fell by more than 1 % on Thursday due to the constant pressure of possible peace talks between Russia and Ukraine, as well as the increasing crude stocks in the United States.
Brent futures decreased $ 1.04, or 1.4 %, to $ 74.14 a barrel by 1303 GMT, while the US crude decreased in West Texas Medium (WTI) by $ 1.04, or 1.5 %, to $ 70.33. Brent and the Ministry of National Security lost more than 2 % on Wednesday after reports that US President Donald Trump said that Russian President Vladimir Putin and Ukrainian President Folodimir Zelinsky express his interest in peace during separate phone calls with him.
Trump also instructed US officials to start discussions about ending the war in Ukraine.
The decrease in oil prices is due to the transformation of the market morale from the fears of supply to adequate supply expectations. Market participants also expect possible increases in Russian energy exports.
The production of Russian crude increased in the past month a little, and the International Energy Agency (IEA) suggested that Russian oil exports could continue if solutions were found in the latest US sanctions.
Peace discussion news, along with the high American oil stocks, compensates for the effects of inflation numbers in the United States, which can affect the cautious approach to the federal reserve in interest rate discounts in 2025.
The sanctions on Russian oil exports, which were imposed after Russia’s invasion of Ukraine nearly three years ago, have supported higher prices, but the recent optimism about peace talks led to expectations that the risk of crude oil supplies may reduce. US crude stocks increased more than expected last week, according to data from Energy Information Administration (EIA), which increases its weight on the market.
In addition, US President Donald Trump’s plans to announce mutual definitions on Thursday added more pressure on oil prices.
