(RTTNews) – Crude oil prices fell in trading on Tuesday, reaching their lowest level since the start of 2021, extending the sharp decline seen in the previous session.
Crude oil for January delivery was last seen trading down $1.57, or 2.8 percent, at $55.25 a barrel, after falling $0.62, or 1.1 percent, on Monday.
The continued decline in the price of crude oil comes amid concerns of oversupply as well as an increase in supply due to a potential Russia-Ukraine peace deal.
Optimism over Ukraine peace talks gained momentum after US President Donald Trump claimed fresh progress in peace talks.
After talks between European leaders and US officials, Trump said that “we are closer now than ever” to a Ukraine peace deal.
The US President also said that he spoke at length to Ukrainian President Volodymyr Zelensky and the conversation went very well.
White House officials reportedly said that under the US-led peace deal, Ukraine would receive the same security guarantees as NATO members.
It was said that Russia is ready for Ukraine to join the EU, but issues related to the region still remain.
A potential Russia-Ukraine peace deal could pave the way for the lifting of Western sanctions against Moscow’s energy trade and raise concerns over excess supply in the market.
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