Oil prices extended losses early on Tuesday after news broke that Ukraine has mostly agreed to a peace deal, with “minor details” to discuss and settle.
As of 8:35a.m. ET on Tuesday, the U.S. benchmark crude futures, WTI Crude, dropped by 1.29% to further slip below $60 per barrel, at $58.08.
The international benchmark, Brent Crude, was trading down by 1.23% at $62.59.
Prices reacted to reports early on Tuesday that the U.S. plan for peace in Ukraine has received support from Ukrainians. The development added to persistent concerns about an already oversupplied oil market.
“The Ukrainians have agreed to the peace deal,” a U.S. official told CBS News today.
“There are some minor details to be sorted out but they have agreed to a peace deal,” the U.S. official added.
Rustem Umerov, Secretary of the National Security and Defense Council of Ukraine, posted on X early on Tuesday “We appreciate the productive and constructive meetings held in Geneva between the Ukrainian and U.S. delegations, as well as President Trump’s steadfast efforts to end the war.”
“Our delegations reached a common understanding on the core terms of the agreement discussed in Geneva,” Umerov added.
“We now count on the support of our European partners in our further steps. We look forward to organizing a visit of Ukraine’s President to the US at the earliest suitable date in November to complete final steps and make a deal with President Trump.”
A peace deal that President Trump and Ukraine’s President Volodymyr Zelenskyy could agree on as early this week is weighing on oil prices as traders expect that some sanctions on Russia’s energy industry and exports could be eased.
While Ukraine and the U.S. were negotiating in Geneva, U.S. Army Secretary Dan Driscoll was in Abu Dhabi for discussions with Russian officials, sources told CBS News.
As of early Tuesday, there was no reaction or comment from Russia on a peace deal.
By Charles Kennedy for Oilprice.com
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