FX.co ★ Oil Extends Decline on Prospects of Russia-Ukraine Deal

On Monday, WTI crude oil futures declined to $57.8 per barrel, marking a fourth consecutive session of losses and hitting a one-month low. This downturn is in response to potential developments towards a peace agreement between Russia and Ukraine. High-ranking US and Ukrainian officials revealed on Sunday that progress is being made on a US-driven proposal to resolve the nearly four-year conflict in Ukraine. This is happening despite some European allies voicing concerns that the plan might be too accommodating to Moscow. If implemented, the agreement could lead to the lifting or easing of sanctions on Russian oil, potentially introducing more oil into a market that is already preparing for a considerable surplus next year. So far this month, WTI has decreased by over 5%, and it is on pace for a fourth consecutive monthly decline, which would represent its longest losing streak since 2023.