Oil prices fell on Thursday. Investors focused again on the Russia-Ukraine peace talks, while closely watching the potential impact of the US seizure of a sanctioned oil tanker off the coast of Venezuela.
Brent crude fell 1.3% to $61.40, while WTI fell 1.3% to $57.68.
The day before, supply concerns due to the US tanker operation had driven prices higher.Russian Foreign Minister Sergey Lavrov announced that US envoy Steve Witkoff, who visited Moscow this month, “cleared misunderstandings” and presented Russia’s proposals on collective security guarantees to Washington.
LSEG senior energy analyst Emril Jamil said, “The tanker operation hasn’t fully impacted the market yet, but further tensions could create sharp volatility in oil.” “Markets are focused on the peace process.”
US President Donald Trump confirmed that a “very large” tanker had been seized off the coast of Venezuela. British risk management company Vanguard reported that the vessel is believed to be the Skipper.
Refineries in Asia are demanding high discounts on Venezuelan oil due to increased supply of sanctioned oil from Russia and Iran and rising security risks in the Caribbean.
European leaders met with Trump to assess the latest US initiatives to end the war in Ukraine.
Meanwhile, Ukrainian security sources announced that a Russian oil platform in the Caspian Sea was hit by a drone attack for the first time and that production was halted. The International Energy Agency raised its forecast for global oil demand in 2026 but lowered its expectation for supply growth. This change suggests that next year’s oil surplus may shrink somewhat. On the other hand, the US Federal Reserve’s decision to cut interest rates emerged as a factor that could support economic growth and, consequently, oil demand.
