Oil bounces as Ukraine ceasefire deal stays elusive

SINGAPORE (Reuters) – Oil costs rebounded on Friday to get well a few of their greater than 1% losses within the earlier session, partly attributable to diminishing prospects of a fast finish to the Ukraine struggle that might carry again extra Russian power provides.

Brent crude futures rose 46 cents, or 0.7%, to $70.34 a barrel by 0406 GMT after settling 1.5% decrease within the earlier session. U.S. West Texas Intermediate crude was at $67.03 a barrel, up 48 cents, or 0.7%, after closing down 1.7% on Thursday.

Russian President Vladimir Putin mentioned on Thursday that Moscow supported a U.S. proposal for a ceasefire in Ukraine in precept, however sought numerous clarifications and situations that appeared to rule out a fast finish to the preventing.

“Russia’s tepid assist of a 30-day cease-fire proposal with Ukraine has lowered confidence round a ceasefire within the brief time period,” IG market analyst Tony Sycamore mentioned.

“The sensation is that U.S. will not raise sanctions till they agree a ceasefire.”

Nonetheless, the worldwide commerce struggle that has roiled monetary markets and raised recession fears is escalating with U.S. President Donald Trump on Thursday threatening to slap a 200% tariff on wine, cognac and different alcohol imports from Europe.

The Worldwide Vitality Company warned on Thursday that world oil provide might exceed demand by round 600,000 barrels per day this 12 months, attributable to progress led by america and weaker than anticipated world demand.

“The macroeconomic situations that underpin our oil demand projections deteriorated over the previous month as commerce tensions escalated between the U.S. and a number of other different nations,” the IEA mentioned, prompting it to revise down its demand progress estimates for the fourth quarter of 2024 and the primary quarter of 2025.

The Trump-driven commerce struggle woes and demand worries dented oil costs on the day gone by, although the potential for much less Russian oil within the world markets within the close to time period offered some cushion throughout Friday’s commerce.

“Most value projections have been to the draw back within the brief time period, however geopolitical pressure might nonetheless trigger provide disruptions,” ANZ analysts mentioned in a be aware to shoppers.

(Reporting by Florence Tan; Enhancing by Shri Navaratnam)