Brent drops amid signs of progress in Ukraine peace talks
The front-month ICE Brent contract has dropped by $0.35/bbl on the day, to trade at $62.48/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Brent crude’s price has gained some support after the American Petroleum Institute (API) reported a decline in US crude stocks.
Crude oil inventories in the US decreased by 1.9 million bbls in the week ending 21 November, according to the API estimates.
A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.
Downward pressure:
Brent crude has edged lower as momentum builds around advancing peace negotiations between Russia and Ukraine.
According to media reports, Ukraine has agreed to the preliminary terms of the revised US-brokered ceasefire proposal to end the conflict – which has continued for nearly four years now.
“Positive signals from both the US and Ukraine regarding a Russia-Ukraine peace deal continue to put pressure on energy markets,” two analysts from ING Bank said.
Oil market analysts now await comments from Moscow. “We are likely to get more colour on Russia’s stance in the coming days,” ING Bank’s analysts added.
By Aparupa Mazumder
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