Brent slips amid Ukraine ceasefire hopes

The front-month ICE Brent contract has plunged by $1.45/bbl on the day, to trade at $59.83/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

The European Union (EU) on Monday sanctioned four shipping companies and five individuals for supporting Russia’s shadow fleet operations. These entities have direct or indirect ties to Russian oil companies Rosneft and Lukoil – both of which are also subject to US sanctions since October, according to the EU Council.

This news has provided some support to Brent’s price today.

These shipping companies own or manage shadow fleet tankers restricted by the EU or by other countries, the bloc said in a statement. 

Downward pressure:

Brent crude’s price has plunged below the $60/bbl mark amid growing hopes of a potential ceasefire deal between Russia and Ukraine.

The US government has offered to provide “NATO-style security guarantees” to Kyiv, Reuters reported, signalling potential commitments by allied countries to safeguard Ukraine’s territorial integrity and political independence.

“Crude oil fell as the market weighed up signs of optimism on a peace deal being reached between Russia and Ukraine,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Besides, European negotiators reported progress in talks to end the four-year long conflict, the report added. These developments have raised market expectation of a peace deal – sooner than later.

“Oil markets will be watching developments closely, given the significant supply risk from sanctions on Russia,” remarked two analysts from ING Bank.

By Aparupa Mazumder

Please get in touch with comments or additional info to news@engine.online