Oil prices fall on prospects of end to Ukraine war

Oil drilling rigs

Oil prices declined today, Feb. 13, on prospects of a US-brokered peace deal between Russia and Ukraine that could end Western sanctions on Moscow and boost crude supplies.

Brent crude was trading down 0.92% at $74.49 a barrel, at 09:09 am Makkah time. West Texas Intermediate (WTI) crude fell 0.95% to $70.69 a barrel.

Both grades lost more than 2% yesterday after US President Donald Trump revealed that he had phone conversations with Russia’s Vladimir Putin and Ukraine’s Volodymyr Zelensky, where they expressed their desire of peace between the two countries.

Trump said he had ordered US officials to begin talks with both sides to end the Ukraine war, paving the way for lifting sanctions on Russia over the conflict, including on the oil sector and its supply chains.

ANZ analysts explained in a note published today that signs of a global oil supply shortage have been pushing prices higher over the past weeks, and US sanctions on Russian oil companies and tankers – imposed by the previous administration of President Joe Biden – have exacerbated the situation, Reuters reported.

On another note, oil was subjected to additional pressure due to the rise in its inventories in the US for the third consecutive week, according to the latest data issued by the Energy Information Administration.

Meanwhile, Trump reiterated his intention to impose identical tariffs on all countries that impose duties on their imports from the US as early as Feb. 12 or 13.