Core Insights - Oil markets are experiencing volatility due to potential progress in Russia-Ukraine peace talks and a strengthening U.S. dollar, which has contributed to a decline in oil prices [1][2][3] - West Texas Intermediate is trading at $58.05 and Brent at $62.58, reflecting a drop of approximately 3% last week, marking the lowest levels since October 21 [1][2] - The possibility of a peace deal could lead to the re-entry of sanctioned Russian crude into global markets, impacting supply dynamics [2][3] Market Dynamics - The recent decline in oil prices is attributed to traders weighing the implications of a potential peace deal that may allow for the resumption of Russian oil exports [2] - U.S. Secretary of State Marco Rubio has expressed optimism regarding the peace talks, indicating "tremendous progress," although specific details remain vague [3] - The dollar index is nearing its highest level since late May, making oil more expensive for buyers using other currencies, which adds further pressure to the market [3] Supply and Demand Factors - Rising production from OPEC+ and concerns about demand are contributing to a bearish sentiment in the oil markets [3]