Oil prices continued to fall on December 9 by 2% following the previous session, as markets closely monitor peace talks on the Russia-Ukraine war and await a decision on the U.S. interest rate.
Source: Gazeta.UA
Brent futures dropped by 8 cents (0.1%) to $62.41 per barrel, while West Texas Intermediate fell by 13 cents (0.2%) to $58.75. Both contracts lost more than $1 per barrel after Iraq resumed production at the West Qurna-2 field, owned by Lukoil.
Senior analyst at Phillip Nova, Priyanka Sachdeva, noted that the drop in Brent to $62 reflects the overall December trend. “Talks about disruptions in Iraq have subsided, and the market is focused on sufficient supply and cautious demand expectations,” she added.
Ukraine is expected to share an updated peace plan with the U.S. following President Volodymyr Zelensky’s talks in London with the leaders of France, Germany, and the United Kingdom. Chief analyst at KCM Trade, Tim Water, noted that oil prices remain in a narrow range until it becomes clear whether the negotiations will be successful. If they fail, prices are expected to rise, while progress could lead to a drop due to the potential return of Russian oil to the global market.
Another key factor is the upcoming U.S. Federal Reserve decision on monetary policy, which is set to be announced on Wednesday. Markets estimate an 87% probability of a 0.25 percentage point rate cut, which usually stimulates oil demand, although analysts remain cautious about its short-term impact on the market, considering the policies of the Trump administration.
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