Oil Prices Edged Lower Amid Ukraine Peace Hopes Despite Supply Concerns

PUKMEDIA

Oil prices.

Oil prices eased on Friday and were on track to record a second consecutive weekly decline, as growing optimism over a potential peace agreement between Russia and Ukraine outweighed concerns about possible supply disruptions stemming from a U.S. blockade of Venezuelan oil tankers.


Brent crude futures slipped by 9 cents, or 0.2%, to $59.73 a barrel by 0456 GMT. U.S. West Texas Intermediate (WTI) crude fell 13 cents, or 0.2%, to $56.02 a barrel.


On a weekly basis, Brent crude was down 2.3%, while WTI declined by 2.5%.


U.S. President Donald Trump said on Thursday that negotiations aimed at ending the war in Ukraine were “getting close to something”, ahead of talks between U.S. and Russian officials scheduled for this weekend.


Meanwhile, uncertainty persists over how Washington would implement President Trump’s announcement to blockade sanctioned tankers entering or leaving Venezuela. Venezuelan crude accounts for roughly 1% of global oil supply. In an unprecedented step, the U.S. Coast Guard seized a Venezuelan oil tanker last week.


Analysts noted that any additional measures targeting Russian oil exports would pose a significantly greater risk to global supply than the proposed blockade of Venezuelan tankers.


In a related development, Venezuela on Thursday authorised two very large crude carriers not subject to U.S. sanctions to depart for China, according to sources familiar with the country’s oil export operations.




PUKMEDIA