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Oil Slips on Ukraine Peace Hopes, Weak China Data

Signs of progress in Russia-Ukraine negotiations raised expectations for an easing of sanctions.

Overview

  • Brent fell 0.40% to $60.32 a barrel and WTI declined 0.39% to $56.60 in early Tuesday trading.
  • U.S. officials said Washington offered NATO-style security guarantees to Kyiv in Berlin talks, boosting optimism that negotiations are moving closer to a deal.
  • China reported factory output growth at a 15-month low and the slowest retail sales since December 2022, stoking concerns about oil demand.
  • Traders said supply worries from last week’s U.S. seizure of a tanker off Venezuela were tempered by ample floating storage and earlier Chinese buying of Venezuelan barrels.
  • Monday’s earlier bounce tied to U.S.-Venezuela frictions gave way to fresh selling as demand signals and potential sanction relief took precedence.