Asia’s oil-dependent economies could soon find further relief as a peace deal between Moscow and Kyiv edges closer, raising the prospects of Russia resuming crude supply to global markets and again reshaping supply dynamics that have significantly influenced prices since the war in Ukraine broke out in 2022.
Analysts told This Week in Asia that the potential accord had already led to lower oil prices amid heightened expectations that sanctions against Moscow might soon be lifted, potentially unleashing large volumes of crude from Russia, the world’s second-largest producer, in international markets.
Oil prices slipped again this week as traders reacted to news of the US-brokered proposed deal, even though negotiating teams have yet to reach an agreement on its most sensitive provisions.
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Brent crude oil prices fell by 0.4 per cent to US$62.86 a barrel in the afternoon in Asia on Thursday, while US West Texas Intermediate crude dropped by a similar margin to US$58.42 a barrel.
Crude oil prices are on track to fall in November for a fourth consecutive month, the longest losing streak since 2023.
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The prospect of more supplies than demand in the event of a peace deal to end the war in Ukraine has been weighing on the oil market.