Brent rises as Russia-Ukraine peace talks stall
The front-month ICE Brent contract has risen by $0.18/bbl on the day, to trade at $63.02/bbl at 09.00 GMT.
IMAGE: Getty Images
Upward pressure:
Oil prices rose after Ukrainian strikes on Russia’s oil infrastructure raised concerns about supply disruptions and as stalled peace talks dampened hopes of a deal that could bring more Russian crude back to global markets.
Ukraine targeted the Druzhba pipeline in Russia’s Tambov region—its fifth strike on the route supplying Hungary and Slovakia—according to a Ukrainian military intelligence source cited by Reuters.
Prices were also supported by the sense that peace negotiations were going nowhere. US President Donald Trump’s team left discussions with the Kremlin without progress on ending the war, and Trump told reporters it remained uncertain what happens now, Reuters reported.
“Crude oil gained as talks between Russia and Ukraine fail to deliver a peace deal,” said ANZ Bank senior commodity strategist Daniel Hynes.
Brent futures slipped, as “US-led Ukraine peace efforts drag on and the market lacks a clear signal on how or when they might conclude,” noted Vanda Insights’ founder Vandana Hari.
Downward pressure:
Brent crude has come under slight downward pressure after the latest weekly report from the US Energy Information Administration (EIA).
The EIA said commercial US crude inventories rose by 574,000 bbls to 428 million bbls for the week ending 28 November. An increase of this kind usually signals softer demand, which can weigh on Brent prices.
By Tuhin Roy
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