Oil Falls as Zelensky Agrees to Work With U.S. Peace Proposal

Overview

• Brent January futures settled down 0.20% at $63.38 a barrel on ICE, while December WTI closed 0.50% lower at $59.14 on Nymex.
• Valor Econômico reported that Volodymyr Zelensky said he would engage with a U.S.-crafted peace plan, prompting a pullback in prices.
• Analysts said a ceasefire that results in suspending sanctions on Russian oil could release additional supply from the world's third-largest producer.
• Expectations of a surplus were already in place, heightening concerns that restored Russian flows would pressure prices further.
• Mizuho's Robert Yawger warned WTI could trade significantly lower and break $55 if a ceasefire is secured and sanctions are lifted.