Global oil prices fell sharply on Tuesday following reports from the latest round of talks between Ukraine and Russia. The drop came as negotiators failed to make progress on key issues, including a potential ceasefire and prisoner exchanges. Brent crude dropped by 3.2% to $87.50 per barrel, while West Texas Intermediate fell 2.9% to $84.10. The declines mirrored similar losses seen during the 2022 talks, when prices fluctuated amid shifting expectations of a prolonged conflict.
Stock markets in Europe followed suit. The Oslo Børs index lost 1.8%, led by declines in energy and industrial stocks. The drop was the steepest single-day decline since mid-January. Analysts at DNB Markets attributed the sell-off to increased risk aversion among investors. "The lack of concrete agreements has made markets more cautious," said a senior trader at the bank.
The Ukrainian hryvnia also weakened against major currencies, trading at 39.45 per dollar, down from 39.10 the previous day. The currency has been under pressure since the start of the year due to concerns over foreign aid and economic stability. Ukraine’s central bank did not immediately comment on the latest market movements.
Energy traders in London noted that the decline in oil prices was more pronounced than expected. "The market was pricing in a breakthrough," said an analyst at Saxo Bank. "When that didn’t happen, the reaction was swift." The drop in oil prices is expected to ease pressure on European consumers, where fuel costs have remained high despite recent declines.
Source: e24.no