Oil prices were trading lower Wednesday morning, down 45c to $56.65/Bbl (7:27 AM)
- News of significant progress in the Ukraine/US/Russia talks added pressure to crude oil
- The US and Ukraine’s allies moved toward an agreement to offer security guarantees for Kyiv
- US special envoy Steve Witkoff said officials made significant progress on a plan to end Russia’s war in Ukraine and “largely finished the security protocols” (Bloomberg)
- However, President Zelenskiy warned that the progress reached Tuesday is “still not enough to have peace”
- AEGIS notes that oil markets are sensitive to indications of possible peace between Ukraine and Russia as many believe Russian barrels would more easily flow and it reduces Russian supply risks to the market
President Trump said Venezuela would release as much as 50 MMBbl to the US
- Oil prices responded by moving lower late Tuesday after President Trump’s statement about exerting greater control over Venezuela’s oil industry
- ABC reported that the Trump Administration told Venezuela’s interim leader that her government must exclusively partner with US on oil supply, and favor the country when selling crude (Bloomberg)
At the time of this writing, the US is attempting to seize a Russian-flagged crude vessel transporting oil in the North Atlantic
- Russian media showed video of at least one MH-6 little Bird helicopter, which is used by US special forces, flying near the vessel Marinera
Crude oil prices also receiving downward pressure as CNBC reports the US will ease sanctions on Venezuela, which would allow the country to sell oil indefinitely (CNBC)
- Shares of US oil refiners were up in pre-market trading