Brent loses ahead of US-Russia meeting this weekend
The front-month ICE Brent contract has dropped by $0.29/bbl on the day, to trade at $59.74/bbl at 09.00 GMT.
IMAGE: Oil barrels. Getty Images
Upward pressure:
Brent crude’s price has found some support on the back of fresh economic data from the world’s largest crude oil consumers – the US.
The US Consumer Price Index (CPI), a key gauge of inflation, increased by 0.2% in both October and November, after rising by 0.3% in September.
The data supports the likelihood of further US interest rate cuts in 2026, according to market analysts.
Lower interest rates in the US can support demand growth and make dollar-denominated commodities like oil less expensive for holders of other currencies.
Downward pressure:
Growing optimism over a potential Russia-Ukraine peace agreement has offset supply disruption concerns stemming from the blockade of Venezuelan oil tankers.
US President Donald Trump said talks aimed at ending the conflict in Ukraine are “getting close to something,” Reuters reported.
The remarks come ahead of a meeting between US and Russian officials over the weekend.
Market analysts believe that a deal could potentially ease energy-related sanctions on Kremlin, bringing Russian oil back to a global market already facing oversupply concerns.
“Current US sanctions on Russian oil companies are having an impact on oil exports, with volumes falling below 400kb/d [400,000 b/d] to India and 600kb/d [600,000 b/d] to China,” ANZ Bank’s senior commodity strategist Daniel Hynes said.
By Aparupa Mazumder
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