Oil Prices Slip on Peace Deal Progress

Core Insights - Oil prices have declined in early Asian trade due to renewed hopes for a Russia-Ukraine peace deal and anticipation of an OPEC+ meeting [1][2] - The front-month West Texas Intermediate (WTI) fell by approximately 0.55% to $58.33 per barrel, while Brent Crude decreased by 0.48% to around $62.83 [1] - Analysts suggest that recent price increases were likely driven by short covering and technical buying rather than fundamental changes [1] Geopolitical Developments - Progress in a peace deal between Russia and Ukraine is a significant factor affecting oil markets, with U.S. envoy Steve Witkoff set to visit Moscow next week [2] - Ukraine has reportedly agreed to a peace deal, pending minor details, which could lead to increased Russian crude supply and contribute to global inventory levels [2] Market Outlook - Despite hopes for increased demand due to softer U.S. rates or seasonal factors, the long-term outlook indicates a potential oversupply, with projections suggesting a surplus by 2026 [3] - The upcoming OPEC+ meeting introduces uncertainty, as market participants await signals regarding production quotas or output strategies that could influence prices [4] - Current expectations indicate that OPEC+ is unlikely to change its output policy for the first quarter or adjust 2026 output levels [4]