DTN Oil Update
Oil Futures Down on Ukraine Concessions to End War
SECAUCUS, N.J. (DTN) -- Fuel and crude oil futures fell broadly Thursday, Dec. 11, on media reports that Ukraine has sent a proposal to U.S. President Donald Trump on territorial concessions it would be prepared to make to end the war with Russia. Modest changes to global oil supply glut predictions for next year by IEA, meanwhile, provided little support.
On the Ukraine front, energy markets are closely following U.S.-led initiatives which could end the near four-year conflict and lift sanctions on Russian oil that could further add to the surplus in crude.
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German chancellor Friedrich Merz, who is leading Europe in overseeing Ukraine's interests in the conflict, was quoted in media reports as saying the Ukraine proposal on concessions was sent to Trump after various European leaders had spoken by phone with the U.S. President on Wednesday, Dec. 10.
Ukraine's response was hastened by Trump's pressing on Wednesday for a faster solution to the war.
"After days of relatively little progress on the Ukraine peace front, it seems things are moving again, and the oil market is taking note of what this could mean for the sanctions on Russian supply," said John Kilduff, partner at New York energy hedge fund Again Capital.
In its December report, the IEA, or International Energy Agency, revised the 2026 global oil overhang to 3.84 million bpd, down from the 4.09 million bpd it forecast for November. The modest revision to its outlook came as the agency acknowledged an improved macroeconomic outlook and existing sanctions on Russian and Venezuelan oil.
The NYMEX WTI futures contract for January delivery fell $0.77 to $57.59 bbl, while the ICE Brent for February shipment slid $0.83 bbl to $61.39 bbl.
ULSD futures for delivery in January fell $0.0412 to $2.318 gallon.
RBOB futures contract for January delivery slipped $0.0171 to $1.7644 gallon.
