World News
Oil In The Doldrums As Analysts Weigh Impacts Of Peace Deal, Fed Cut
Oil trading on Monday remained stubbornly range bound as analysts tried to assess the impact of everything from an expected U.S. Federal Reserve rate cut to the sluggish peace talks between Russia and Ukraine.
As of 1053 GMT, Brent fell by 57 cents to $63.18 per barrel, and West Texas Intermediate dipped 60 cents to $59.48.
LSEG data showed that the market has priced in an 84 percent chance of a modest interest rate cut from the Fed when it meets to discuss the matter December 9-10.
As for the peace talks, which saw Ukrainian president Volodymyr Zelenskiy meet with European leaders on Monday, the main stumbling blocks were said to be security guarantees for Kyiv and the status of Russian-occupied territory, as well as differing views on the peace proposal tabled by Washington.
ANZ analysts stated in a note, “The various potential outcomes from [U.S. president] Donald Trump’s latest push to end the war could release a swing in oil supply of more than 2 million barrels per day.”
Bloomberg noted that both WTI and Brent remain on their longest runs below their 100-day moving average in about a year: “The technical gauge, which tracks underlying trend momentum, reflects the bearishness continuing to grip the market ahead of the widely telegraphed glut.”
In other oil news on Monday, TotalEnergies announced it would merge its upstream United Kingdom business with NEO NEXT to create the biggest independent oil and gas producer in Britain with a production over 250,000 barrels of oil equivalent per day (boepd); completion of the deal is expected during the first half of 2026, with NEO NEXT+ jointly owned by TotalEnergies with a 47.5 percent stake, HitecVision with 28.8 percent, and Repsol UK with a 23.6 percent stake.
TotalEnergies chairman and CEO Patrick Pouyanné said, “This transaction demonstrates the long-lasting commitment of TotalEnergies towards the UK oil and gas sector and its energy security.”
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 438.50 | 2.00 | 667.50 | 8.50 |
| Rotterdam | 407.00 | 1.00 | 646.00 | 3.50 |
| Houston | 436.50 | 0.50 | 661.50 | 7.50 |
| Fujairah | 435.00 | 4.00 | 723.50 | 5.00 |
| Global 20 Ports Average | 472.50 | 2.00 | 752.00 | 3.50 |
| Global 4 Ports Average | 429.00 | 1.00 | 674.50 | 4.50 |
| Global Average Bunker Price | 519.00 | 1.00 | 796.00 | 0.00 |
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