Oil Prices Fell On Hopes Of Ukraine Peace Talks And Rising US Inflation

Oil prices declined on Thursday, February 13, 2025, due to potential peace talks between Russia and Ukraine and concerns about rising inflation.

Factors Influencing the Market

FactorDetails

Ukraine Peace Talks

US President Donald Trump stated that both Russian President Vladimir Putin and Ukraine President Volodymyr Zelenskiy showed interest in peace talks. Trump instructed US officials to start negotiations, raising hopes for lifting US sanctions on Russian crude.

Impact of Sanctions

Sanctions on Russia, the world’s third-largest oil producer, have significantly affected crude exports since its invasion of Ukraine, leading to higher prices.

US Inflation Data

Hotter-than-expected US inflation data impacted oil markets. The Producer Price Index for final demand increased by 0.4% month-on-month, exceeding the 0.3% forecast.

OPEC Demand

OPEC maintained its global oil demand growth estimates for 2025 and 2026 but warned of supply-demand balance uncertainties due to US tariffs.

US Inventory Data

A larger-than-expected build in oil stockpiles put downward pressure on oil prices.

Price Movements

  • Brent crude oil futures for April fell 1.3% to $74.22 a barrel.
  • West Texas Intermediate crude futures also dropped by 1.3% to $70.44 a barrel.
  • Brent futures were down 55 cents, or 0.73 per cent, at $74.63 a barrel by 0141 GMT.
  • US West Texas Intermediate (WTI) crude dropped 52 cents, or 0.73 per cent, to $70.85.
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