[New York Oil Price]WTI Plunges to One-Month Low on Hopes for End to Ukraine War

(Seoul=Yonhap Infomax) Sung Jin Kim – New York oil prices reversed sharply lower, posting their steepest daily drop in a month, as optimism over a potential end to the Ukraine war fueled concerns about increased supply.

On November 25 (U.S. Eastern Time), West Texas Intermediate (WTI) crude for January delivery settled at $57.95 per barrel on the New York Mercantile Exchange, down $0.89, or 1.51%, from the previous session. This marks the lowest closing price since October 21.

Earlier in the day, ABC News reported that the Ukrainian delegation had reached an agreement with the United States on the terms of a potential peace deal. A U.S. official told ABC, "Ukraine has agreed to the peace agreement," adding, "There are some details to be finalized, but they have agreed to the deal."

U.S. President Donald Trump also struck an optimistic tone. Speaking at the White House's annual Thanksgiving turkey pardon ceremony, Trump said, "I think we are very close to an agreement (on ending the war)," and added, "We will get there."

Priyanka Sakdeva, senior market analyst at Phillip Nova, noted in a report, "The biggest short-term risk is oversupply, and current price levels appear vulnerable."

WTI at one point plunged nearly 3%, threatening to break below the $57 mark, but pared losses as the U.S. dollar weakened during the session. Since oil is priced in dollars, a weaker greenback can boost demand from buyers using other currencies.

The U.S. Dollar Index (DXY), which measures the dollar against six major currencies, fell below the 100 level in New York trading. The euro strengthened on hopes for an end to the Ukraine conflict.

A Bloomberg report also contributed to dollar weakness, stating that Kevin Hassett, Chairman of the White House National Economic Council (NEC) and President Trump's economic adviser, is a leading candidate to become the next Federal Reserve (Fed) Chair.

Hassett is considered the most dovish among the Fed chair candidates, seen as likely to support the rate cuts favored by President Trump.

sjkim@yna.co.kr

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