Oil reacts with respite to 28-point plan to end war against Ukraine

Oil prices took a "respite" on Monday, November 24, after falling by about 3% last week, as investors weighed the chances of a US interest rate cut against the prospect of a deal between russia and Ukraine that could free up more russian supplies by easing sanctions.

This is reported by Economic Pravda with reference to Reuters.

Thus, the US and Ukraine intended to resume work on a revised peace agreement plan by the deadline set by US President Donald Trump for Thursday, November 27, after agreeing to adjust the previous version, which, according to critics, was too favorable to Moscow.

Brent crude futures were unchanged at USD 62.56 a barrel at 04:58 GMT, while West Texas Intermediate was down 2 cents, or 0.03%, at USD 58.04 a barrel.

Both benchmarks hit their lowest levels since October 21.

“The sell-off was driven largely by President Trump’s persistent push for a peace deal between russia and Ukraine, which markets see as a quick way to unblock significant russian supplies,” IG analyst Tony Sycamore wrote in a note.

The moves toward a deal far outweighed short-term disruptions from U.S. sanctions on state-owned Rosneft and private oil giant Lukoil, which took effect on Friday, he added.

A peace deal could lift sanctions that have restricted russian oil exports.

According to the U.S. Energy Information Administration, russia was the world's second-largest crude oil producer after the U.S. in 2024.

Uncertainty about a U.S. interest rate cut is another factor dampening investor interest.

However, the likelihood of a rate cut next month increased after New York Federal Reserve President John Williams suggested cutting rates in the near future.

As Ukrainian News Agency earlier reported, oil prices fell on Monday, November 17, after loading resumed at russia's key export hub Novorossiysk after a shutdown caused by the Ukrainian attack.

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