Oil price falls 2% amid talks on plan to end Ukraine war

The cost of contracts for delivery of Mark Brent oil with execution in January declined at the auction on November 21 by more than 2%: the price fell below $62 per barrel, follows from the data of the Intercontinental Exchange. WTI futures also fell by more than 2% to $57.4 per barrel.

In parallel with the fall in oil prices, the securities of European companies operating in the energy market fell. For example, shares of Shell and BP cheapened at the auction in London by more than 1% each, shares of Norwegian Equinor fell by 2%, and securities of German Siemens Energy collapsed by almost 7%. The European commodity index Stoxx Oil and Gas fell by 2%.

Oil prices declined amid talks on a U.S. plan to end the war between Russia and Ukraine, as well as U.S. sanctions against Russian oil producers Rosneft and Lukoil, Reuters noted.

"Amid news of the talks, which came just as U.S. sanctions against two major Russian oil companies are due to take effect, oil markets have experienced some relief over the risks to Russian oil supplies," Deutsche Bank managing director Jim Reed said in a Reuters note.

However, a peace agreement is "far from guaranteed", ANZ analysts added, as Kiev has repeatedly rejected Russia's demands, considering them unacceptable. "The market is also beginning to be skeptical about the effectiveness of the latest restrictions on Russian oil companies Rosneft and Lukoil," ANZ experts stressed.

Oil prices were further pressured by a strengthening US dollar, with the US currency heading for its best week in more than a month amid stock market turmoil, Reuters notes.

This article was AI-translated and verified by a human editor