Oil prices have remained bullish for the past two days. WTI is trading near $60 per barrel, while Brent is above $63 after gaining 1.2% on Thursday. Market sentiment has been largely influenced by developments in ceasefire talks in Ukraine, with Ukrainian negotiators set to attend a new round of discussions in Florida. However, Russian President Vladimir Putin has made it clear that there are several points in the US peace plan that he cannot accept.

The market is now focused on whether these talks will lead to the lifting of sanctions on Russia and increased oil exports from the country. If an agreement is reached, global oil supply could increase, potentially putting downward pressure on prices, which are already on track for significant annual losses due to oversupply concerns. This means that news of peace is not necessarily good news for oil prices.

The pressure of excess supply is also evident in Saudi Aramco's decision to lower the price of its flagship crude, Arab Light, to its lowest level since 2021 for January delivery. At the same time, Canadian oil prices also fell. The combination of the prospect of additional supply from Russia and price discounts from major producers like Saudi Arabia has made the market increasingly wary that the era of high oil prices could be under further pressure going forward. (az)

Source: Newsmaker.id