Brent declines on renewed Russia-Ukraine peace talks
The front-month ICE Brent contract has declined by $0.44/bbl on the day, to trade at $63.93/bbl at 09.00 GMT.
IMAGE: Crude oil storage tanks. Getty Images
Upward pressure:
The US Energy Information Administration’s (EIA) latest inventory report has added some upward pressure on Brent’s price today.
Commercial US crude oil inventories have declined by 3.4 million bbls to 424 million bbls for the week ending 14 November, according to data from the EIA.
A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.
“The decline was driven by stronger crude exports, which grew 1.34m b/d [1.34 million b/d] week on week,” remarked two analysts from ING Bank.
Downward pressure:
Reports that the US and Russia are working on a ceasefire deal for Ukraine has dragged Brent’s price lower today.
The US and Russian administrations have been “secretly working” on a new plan to end the conflict in Ukraine, Axios reported, citing officials from both countries.
These developments have helped soften the blow of US sanctions targeting two of Russia’s biggest oil companies – Rosneft and Lukoil.
“Signs that the US is still trying to work on a deal eases some concerns over further sanctions against Russia and also how strongly current curbs [on Lukoil and Rosneft] will be enforced,” ING Bank’s analysts added.
By Aparupa Mazumder
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