Petrol Prices Drop: Brent and WTI Latest Status

Oil Prices Continue to Decline

Oil prices have experienced new declines, extending the decreases recorded last week. The main reasons for this drop 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% to $62.42 per barrel. Meanwhile, US crude oil (WTI) is trading at $57.91 per barrel, down by 0.26%.

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

Analysts' Views

IG analyst Tony Sycamore pointed out an important aspect in his analysis, stating, "The primary reason for the decline is US President Donald Trump's strong initiative for a peace agreement. The market interprets this situation as a significant amount of Russian supply being released quickly," he said.

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

Peace Talks and Investor Sentiment

On Sunday, it was announced that the US and Ukraine had made progress on a peace plan to cope with the challenges posed by the war. Trump has set a deadline for this agreement until Thursday, while European leaders are also pressuring for better negotiations.

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