Oil Prices Experience Minor Increase Amid Ceasefire Speculations
Oil prices saw a 1 percent increase on Friday, with analysts attributing this rise to traders’ optimism regarding a potential ceasefire between Ukraine and Russia.
In the preceding weeks, the prospect of a ceasefire and a potential influx of Russian oil into the global markets had diminished. However, current market sentiment does not anticipate an immediate resolution to the conflict.
As of Friday, North Sea Brent crude increased by 70 cents, reaching $70.58 per barrel, while Texas light sweet crude rose by 63 cents to $67.18 per barrel. This comes after Thursday’s declines, where Brent crude dropped by 1.5 percent and Texas light sweet crude fell by 1.7 percent.
Market analysts from a leading German bank noted, “Brent oil prices are hovering around $70 a barrel. The future trajectory—whether it will break through this level or not—will largely hinge on political developments.”
Russian President Vladimir Putin has expressed tentative agreement to a US-backed proposal for a ceasefire but has requested further explanations and established certain conditions for a peaceful resolution. This uncertainty has led traders to remain skeptical about an imminent end to hostilities in Ukraine.