Brent finds support as Ukraine peace talks stall

The front-month ICE Brent contract has inched up by $0.41/bbl on the day, to trade at $66.42/bbl at 09.00 GMT.

IMAGE: Brent crude price chart. Getty Images

Upward pressure:

Market participants have interpreted the stalled progress on a Ukraine peace deal as an indication that sanctions on Russia—the world’s second-largest oil exporter—are likely to remain in place for now. This has added some upward pressure on Brent futures.

“There are clear upside risks to the oil market, with the most prominent being the ongoing threat of sanctions and secondary tariffs targeting Russia,” said Warren Patterson, head of commodity strategy at ING.

Downward pressure:

US President Donald Trump announced that Israel and Hamas have reached a long-awaited agreement for a Gaza ceasefire and the release of hostages, as part of a broader plan to end the two-year conflict in the Palestinian enclave, according to Reuters. The announcement has put downward pressure on oil prices.

“Crude futures had surrendered some of its gains after US President Donald Trump announced that Israel and Hamas had agreed to the first phase of a peace plan,” said Vandana Hari, founder of VANDA Insights.

Brent crude prices also faced additional pressure, following the release of the US Energy Information Administration’s (EIA) weekly oil inventory report, which showed that commercial US crude stocks rose by 3.7 million bbls to 420.3 million bbls for the week ending 3 October.

By Tuhin Roy

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