FX.co ★ Oil Trades Near Five-Week Low

WTI crude oil futures hovered around $58 per barrel on Wednesday, reaching their lowest point in five weeks. Pressure on prices was influenced by indications that a peace agreement involving Ukraine may be on the horizon, possibly resulting in the lifting of restrictions on Russian crude oil. U.S. President Donald Trump remarked that the negotiations were almost finalized, with only a few issues left to address. Simultaneously, a top Ukrainian aide in Geneva referred to the discussions as an encouraging beginning towards reaching an agreement. A resolution could see the lifting of sanctions on Russia, whose key oil producers have been under heavy restrictions, potentially increasing supply and amplifying concerns of an oversupply in the market, as global production continues to outpace demand. Meanwhile, U.S. crude oil inventories decreased by 1.9 million barrels last week, marking the first decline following three consecutive weeks of increases. Government inventory data is expected later today.