FX.co ★ Oil Falls to 1-Month Low

WTI crude oil futures dropped by over 2%, reaching $57.5 per barrel on Friday, marking the lowest price in a month. This decline followed signals from President Volodymyr Zelenskiy indicating an openness to engage in peace negotiations. The proposed framework, jointly developed by the United States and Russia, is anticipated to come under further discussion when Zelenskiy converses with President Donald Trump in the near future. Reports suggest the plan involves territorial concessions from Ukraine and the lifting of sanctions, potentially paving the way for increased Russian oil exports, thus exacerbating concerns of oversupply. Despite this, European diplomats remain dubious about the likelihood of an agreement coming to fruition. Concurrently, U.S. sanctions against two major Russian oil companies, Rosneft and Lukoil, come into effect today, risking the stranding of up to 48 million barrels of crude at sea. Indian refineries, which have traditionally depended on discounted Russian oil, are now in search of alternative suppliers. Over the course of the week, WTI crude has seen a decline of more than 4%.