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(Seoul=Yonhap Infomax) Sung Jin Kim = New York oil prices declined for a second consecutive session, pressured by growing expectations of a potential resolution to the war in Ukraine. The benchmark West Texas Intermediate (WTI) crude moved further away from the $60 per barrel threshold.
On November 20 (U.S. Eastern Time), December WTI futures on the New York Mercantile Exchange settled at $59.14 per barrel, down $0.30, or 0.50%, from the previous session. Following the close, the front-month contract will roll over to January delivery.
Ukraine announced it had received a draft peace proposal from the United States regarding negotiations with Russia and expressed readiness to consult with Washington on its contents.
After meeting with U.S. Army Secretary Dan Driscoll, President Volodymyr Zelensky said, "Peace is essential, and we highly appreciate President Trump's and his team's efforts to restore European security," adding, "We are prepared for constructive, candid, and effective cooperation."
Speculation that the Ukraine conflict could end surged after U.S. online media Axios reported on November 18 that the Trump administration was secretly discussing a new peace initiative with Russia. As a result, WTI plunged more than 2% in the previous session.
Phil Flynn, senior analyst at Price Futures Group, noted, "Many expected the new proposal to be dismissed by President Zelensky as soon as it was delivered, but he did not outright reject it." He added, "The key question now is whether sanctions against Russia will take effect tomorrow. If the implementation is imminent, they could be lifted or delayed."
U.S. sanctions targeting companies dealing with major Russian oil firms Rosneft and Lukoil are set to take effect the following day.
sjkim@yna.co.kr
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