FX.co ★ Oil Poised for a Weekly Loss

WTI crude oil futures experienced a decline, reaching close to $58 per barrel on Friday, marking the third consecutive session of decreases and setting the stage for a weekly downturn. This movement followed remarks by President Volodymyr Zelenskiy, who indicated an openness to engage in peace negotiations. The peace proposal, jointly developed by the United States and Russia, is slated for further discussion when Zelenskiy meets with President Donald Trump in the near future. Reports suggest the plan may involve Ukraine making territorial concessions and the relaxation of sanctions, which could potentially boost Russian oil exports and exacerbate concerns about an oversupplied market. Despite this, European diplomats remain doubtful that an agreement will be achieved. Concurrently, US-imposed sanctions on two prominent Russian oil firms, Rosneft and Lukoil, have come into effect as of today. These sanctions could result in up to 48 million barrels of crude oil being left unmoved at sea. Consequently, Indian refiners, who have historically depended on discounted Russian oil, are now in pursuit of alternative supplies.