World oil prices fell sharply again after traders began considering the possibility of an end to the Russia-Ukraine war. West Texas Intermediate (WTI) crude was trading near $57 per barrel, after previously falling around 2% from the previous day's closing level. Meanwhile, Brent was also below $61 per barrel, reflecting a more cautious market sentiment. Market participants believe that an end to the war could reopen Russian oil exports, which have been restricted by sanctions.

This development comes after allies the US and Ukraine reportedly reached an agreement on a security guarantee plan for Kyiv at a meeting in Paris. Oil traders saw this progress as a signal that the conflict could subside more quickly than expected, intensifying price pressures due to the prospect of a supply surge. If sanctions on Russian oil were lifted, global supply could increase rapidly, adding to the oversupply already weighing on the market.

Meanwhile, despite the ouster of Venezuelan President Nicolás Maduro by United States forces, the oil market did not react with a price surge. Many analysts believe that Venezuela's geopolitical situation could actually increase the country's oil production in the future if the embargo policy is reversed, thus adding pressure on prices. Market participants have now begun discussions with the US about the possibility of buying back Venezuelan crude.

This situation suggests that current oil market sentiment is more influenced by the long-term supply and geopolitical outlook than short-term disruptions. Despite ongoing global conflicts, hopes for peace in Eastern Europe and potential changes in energy policy in Latin America have kept oil prices down and weakened the market overall. (az)

Source: Newsmaker.id