UkrOil prices tumbled further on Tuesday as reports indicated that Ukraine has largely accepted a peace deal proposed by the United States, heightening expectations that sanctions on Russia’s energy exports could be relaxed soon.
By 8:35 a.m. ET, U.S. West Texas Intermediate,WTI, crude futures had dropped 1.29 per cent, falling below the $60 benchmark to trade at $58.08 per barrel. Brent crude also extended losses, slipping 1.23 per cent to $62.59 per barrel.
The downturn deepened existing worries about an oversupplied market that has struggled for weeks to regain stability.
The latest decline followed confirmation from a U.S. official and a statement by Ukraine’s Secretary of the National Security and Defense Council, Rustem Umerov, that both countries had reached substantial common ground on a peace framework.
Umerov announced on X that meetings between Ukrainian and U.S. delegations in Geneva had been “productive and constructive,” noting a shared understanding on the core terms discussed.
He added that Kyiv was counting on European partners for support in the next phase of the process. Plans are underway to facilitate a visit by President Volodymyr Zelenskyy to Washington in November to conclude remaining steps and formalise the deal with U.S. President Donald Trump.
READ ALSO: US and Ukraine agree on peace plan
Market analysts say traders are pricing in the possibility that an agreement could pave the way for a partial rollback of restrictions on Russian oil and gas exports—an outcome capable of injecting additional barrels into a market already grappling with excess supply.
The mere prospect of renewed Russian flows has placed downward pressure on both major benchmarks.
While the Geneva talks progressed, U.S. Army Secretary Dan Driscoll held separate discussions with Russian officials in Abu Dhabi, CBS News reported. As of early Tuesday, Moscow had not issued any public response to the emerging peace framework.
With crude prices already under pressure from weak demand signals and rising inventories, the momentum toward a settlement in the Ukraine conflict has intensified bearish sentiment.
Analysts warn that unless supply expectations shift or geopolitical developments stall, crude may continue its downward trajectory in the coming days.
Oil Price.com
