Oil Prices Decline on Russia–Ukraine Peace Hopes and Weak China Data

PUKMEDIA

Oil prices.

Oil prices extended losses on Tuesday, pressured by growing optimism over a potential Russia–Ukraine peace deal and weak economic data from China, which raised concerns about global demand.

According to Reuters, Brent crude futures fell 35 cents, or 0.6%, to $60.21 a barrel by 03:50 GMT, while U.S. West Texas Intermediate (WTI) crude declined 30 cents, or 0.5%, to $56.52 a barrel.

Market sentiment weakened after reports of progress in diplomatic efforts to end the war in Ukraine. The United States has offered NATO-style security guarantees for Kyiv, and European negotiators said talks on Monday showed signs of momentum. Expectations of a possible easing of sanctions on Russian oil weighed on prices, although disagreements over territorial concessions remain unresolved.

Further pressure came from softer-than-expected Chinese economic data, which heightened concerns about demand growth. Official figures released on Monday showed China’s factory output growth slowed to a 15-month low, while retail sales recorded their weakest increase since December 2022.

Analysts warned that China’s reliance on exports to offset weak domestic demand may be losing traction. A slowdown in the world’s largest oil importer could further curb consumption, especially as the rapid adoption of electric vehicles continues to reduce petroleum demand.

These factors outweighed supply concerns stemming from the U.S. seizure of an oil tanker off Venezuela’s coast last week.



PUKMEDIA