Oil prices fall as Russia-Ukraine peace talks make progress.

World oil prices fell on December 11th, as investors focused on progress in Russia-Ukraine peace talks and concerns about large gasoline and oil inventories in the United States.

An oil rig in Heilongjiang province, China. Photo: THX/VNA

At the close of trading, North Sea Brent crude oil in London closed at $61.28 per barrel, down 93 cents from the previous session, or 1.49%. US West Texas Intermediate (WTI) sweet crude oil fell 86 cents, or 1.47%, to $57.60 per barrel.

For most of the trading session, both Brent and WTI prices fell by nearly 2%, retreating to their lowest levels since October 2025.

Andrew Lipow, President of Lipow Oil Associates, noted that the market is under pressure from significant oversupply in gasoline and diesel inventories, which is evident in the very weak refining margins.

According to the U.S. Energy Information Agency (EIA), U.S. gasoline inventories increased by 2.5 million barrels last week (ending December 5), while inventories of other distillate products also rose by a similar amount.

The prospect of a peace agreement between Russia and Ukraine also contributed to the decline in oil prices, as such an agreement could bring back large quantities of Russian oil – currently excluded from much of the world market.

Reuters sources reported that Ukrainian drones attacked a Russian oil rig in the Caspian Sea for the first time, forcing the facility to cease oil and gas production. The leaders of Britain, France, and Germany held a phone call with US President Donald Trump on December 10th to discuss the latest US efforts to end the conflict in Ukraine, stating that this was a "decisive moment" for the process.

The previous day, oil prices rose after the U.S. announced it had seized an oil tanker off the coast of Venezuela, raising concerns about potential supply disruptions amid escalating tensions between the two countries.

In its monthly report published on December 11, the International Energy Agency (IEA) raised its forecast for global oil demand growth in 2026, while lowering its forecast for supply growth, implying that the supply surplus may narrow slightly next year.

The Organization of Petroleum Exporting Countries (OPEC) also released its monthly report on the same day, maintaining its forecast for global oil demand growth for 2025 and 2026.

Source: https://baotintuc.vn/thi-truong-tien-te/gia-dau-di-xuong-khi-dam-phan-hoa-binh-nga-ukraine-co-tien-trien-20251212075005060.htm