Oil Prices Slide as US and Russia Agree on Energy Ceasefire

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Oil prices fell on Wednesday following Russia's agreement to U.S. President Donald Trump's proposal to temporarily halt attacks on each other's energy infrastructure, potentially allowing more Russian oil to enter global markets.

Brent crude futures dropped by 12 cents, or 0.2%, to $70.44 a barrel, while U.S. West Texas Intermediate (WTI) crude decreased by 15 cents, or 0.2%, to $66.75.

Russian President Vladimir Putin agreed on Tuesday to suspend attacks on Ukrainian energy facilities, though he stopped short of fully endorsing Trump's request for a 30-day ceasefire.

As one of the world's largest oil suppliers, Russia’s production has been affected since the war began, resulting in sanctions on its energy sector. A potential ceasefire could ease these sanctions, potentially increasing oil supply and lowering prices, according to analysts.

However, the drop in oil prices was limited by ongoing instability in the Middle East. Trump confirmed continued U.S. operations against Yemen’s Houthis and vowed to hold Iran accountable for any attacks by the group, which has disrupted shipping in the Red Sea.

Additionally, Israeli air strikes in Gaza killed at least 200 people, ending a week-long ceasefire and raising concerns about potential disruptions to oil supply in the region. 

U.S. crude oil stock data was mixed, with crude stocks rising by 4.59 million barrels for the week ending March 14, according to American Petroleum Institute data. However, gasoline inventories dropped by 1.71 million barrels, and distillate stocks fell by 2.15 million barrels. Official government data is expected on Wednesday.

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author