Brent gains on Russia-Ukraine peace-talk uncertainty

The front-month ICE Brent contract has gained by $0.35/bbl on the day, to trade at $63.50/bbl at 09.00 GMT.

IMAGE: Brent crude price chart. Getty Images

Upward pressure:

Oil prices have found support amid prolonged efforts toward a Russia-Ukraine peace framework, with ongoing talks keeping geopolitical risk elevated.

President Vladimir Putin said on Thursday that draft peace proposals discussed by the US and Ukraine could form the basis for future agreements to end the conflict but added that Russia would continue fighting if they do not, according to Reuters.

“President Putin said overnight that the US plan could prove the basis for a deal but that some points require discussion,” ANZ Bank senior commodity strategist Daniel Hynes noted.

Brent futures have also been lifted by growing expectations that the US Federal Reserve will cut interest rates next month, a shift that could spur economic growth and support energy demand.

Market watchers are also watching Sunday’s OPEC+ meeting for any signals on potential output changes.

Downward pressure:

The US Energy Information Administration (EIA) reported a sharp rise in crude inventories, tempering some of Brent’s gains today.

Commercial crude stocks climbed by 2.8 million bbls to 427 million bbls for the week ending 21 November, according to EIA data.

By Tuhin Roy

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