Crude oil prices ended their three-day rise as traders reacted to signs of easing tensions between Russia and Ukraine. This adjustment comes amid concerns about potential market oversupply in the coming months. West Texas Intermediate (WTI, Financial) dropped 2.4%, closing just above $67 per barrel, marking its lowest closing price since September. Brent crude also saw a slight decrease, settling just above $71 per barrel.
The significant declines on Monday and Friday led to an almost 5% drop for WTI over the week. Factors contributing to this trend include a dimming outlook for 2025 and reports of progress in ceasefire negotiations in the Middle East, which have exerted bearish pressure that overshadowed mid-week gains.
Discussions between Russian President Vladimir Putin and German Chancellor Olaf Scholz about ending the conflict in Ukraine have sparked hopes among traders that if peace talks advance, transportation costs could decrease, leading to lower oil prices. This scenario is particularly plausible if Europe resumes accepting Russian oil. December WTI futures fell 2.4%, settling at $67.02 per barrel, while January Brent crude decreased 2.1%, closing at $71.04 per barrel.
