Petrol Prices Decline: Brent and WTI Latest Situation

Petrol Prices Continue to Decline

Petrol prices have experienced a new drop, extending the declines recorded last week. The main reasons for this decline include Russia-Ukraine peace talks and the strengthening of the US dollar.

Prices and Market Effects

Brent crude oil futures have decreased by 0.22%, dropping to $62.42 per barrel. On the other hand, US crude oil (WTI) is trading at $57.91 per barrel, down by 0.26%.

Throughout this week, both oil benchmarks have lost about 3% of their value and have reached their lowest closing levels since October 21. Market analysts express concerns that a potential peace agreement could lift the sanctions imposed on Moscow, allowing previously sanctioned supply to re-enter the market.

Analysts' Opinions

IG analyst Tony Sycamore pointed out a noteworthy aspect in his analysis, stating, "The most significant reason for the decline is the strong initiative for a peace agreement by US President Donald Trump. The market sees this as a signal that a significant amount of Russian supply may be released quickly," he said.

Sycamore emphasized that the development of peace talks outweighs the short-term negative effects of the US sanctions that came into effect this week.

Peace Talks and Investor Trends

On Sunday, it was announced that the US and Ukraine made progress on a peace plan to cope with the difficulties brought about by the war. Trump has set a deadline for this agreement by Thursday, while European leaders are pushing for better negotiations.

The threat of increased oil supply in the market and uncertainties regarding US interest rate cuts have negatively impacted investor appetite. However, after John Williams, the President of the New York Fed, signaled the possibility of interest rate cuts in the near term, expectations for a possible cut next month have increased.