EMEA News
Crude Futures Sink as Ukraine Reportedly Agrees to Peace Deal Terms
Crude futures dropped sharply on Tuesday afternoon on reports Ukraine has agreed to the terms of a potential peace deal with Russia.
The Ukrainian delegation has agreed with the US on the terms of a potential peace deal, broadcaster ABC News reported on Tuesday, citing comments from a US official.
The agreement follows US talks with a Russian delegation in Abu Dhabi on Monday.
ICE Brent crude futures sank as the news emerged. The ICE January Brent contract traded at $61.96/bl as of 2:45 PM in London, down from as much as $63.29/bl earlier in the day and from $63.37/bl at Monday's close.
A move towards peace between Russia and Ukraine could result in a flood of Russian oil and refined products returning to Western markets if sanctions were subsequently lifted. This would particularly affect the bunker market, with Russia's refineries producing a high yield of fuel oil from the country's crude.
