Oil prices fell on Tuesday, as expectations of a Russia-Ukraine peace deal strengthened and weak Chinese data increased
Oil prices fell on Tuesday, adding to losses from the previous session as expectations of a Russia-Ukraine peace deal strengthened and weak Chinese data increased.
Brent crude futures fell 35 cents, or 0.6%, to $60.21 a barrel as of 03:50 GMT, while WTI crude traded down 30 cents, or 0.5%, at $56.52 a barrel.
Concerns rose that the latest US sanctions on Russian oil companies would eventually be lifted, adding to an already well-supplied market.
The US offered to provide NATO-style security guarantees for Kyiv, and European negotiators reported on Monday that progress had been made in talks to end Russia's war in Ukraine—an unprecedented step that fueled optimism that talks were getting closer to ending the conflict.
However, no agreement was reached on territorial concessions.
Weak Chinese economic data released on Monday further heightened concerns that global demand may not be strong enough to offset recent supply increases.
Official data showed that China's factory production growth slowed to its lowest level in 15 months. Retail sales also grew at their slowest pace since December 2022 during the COVID-19 pandemic.
This data raised concerns that China's strategy of relying on exports to offset weak domestic demand could be disrupted.
These factors offset supply concerns that arose after the US seized an oil tanker off the coast of Venezuela last week.
Traders and analysts said that excess floating storage capacity and increased Chinese purchases from Venezuela in anticipation of sanctions also limited the impact of this move on the market.
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