Oil extends losses to nine-week trough on global supply concerns

Global oil prices fell in American trade on Wednesday, extending losses for the second session and plumbing nine-week lows on global oversupply concerns, amid increasing odds of a peace deal between Russia and Ukraine, sponsored by the US, which could lead to the lifting of US sanctions on Russian crude exports. 

Otherwise, initial data from the American Petroleum Institute showed a surprise drop in US crude stocks last week, with traders now waiting for the official report from the EIA later today.

Prices

US crude fell 0.6% today to $68.69 a barrel, the lowest since December 23, with a session-high at $69.25.

Brent shed 0.5% to $72.20, the lowest since December 23, with a session-high at $72.78.

On Tuesday, US crude lost 2.7%, while Brent declined 3.0%, marking the second loss in three days amid concerns about Trump’s tariffs and their impact on the global economy.

Ukraine War 

Reuters reported that the US and Ukraine reached a deal on exotic minerals, a cornerstone in President Donald Trump’s plan to end the war in Ukraine quickly.

US Stocks

Initial data from the American Petroleum Institute showed a drop of 0.6 million barrels in US crude stocks last week, the first weekly drop in six weeks, while analysts expected a buildup of 2.3 million barrels.

Now traders await official data from the EIA later today, still expected to show a buildup of 2.5 million barrels.