(RTTNews) – Crude oil fell on Monday due to the strengthening of the US dollar.
In addition, traders’ attention is focused on the trajectory of the US peace plan aimed at ending the Russia-Ukraine war and announcements to be made by the US Federal Reserve on December 10.
WTI crude oil for January delivery was last seen trading at $58.80 a barrel, down $1.28 (or 2.13%).
Crude oil is a dollar-denominated commodity, its value decreased today after the US dollar strengthened. The dollar index was last seen trading at 99.08, up 0.09%.
Despite sanctions imposed by the US and the West to force Russia to end the war with Ukraine, Russia is continuing its attacks.
Russia targeted the central Ukrainian city of Kremenchuk in the attack overnight Sunday.
For its part, Ukraine’s military said it had attacked the Russian Ryazan oil refinery.
Even though the sanctions are cutting off Russia’s petrodollar revenues, the G7 and the EU are considering replacing the existing price cap on Russian oil with a complete ban on Western maritime services.
At present, other countries can buy Russian oil only at the prescribed maximum price.
Under the new proposal, beyond just setting the price, the alliance wants to impose a ban on Western ships and services carrying Russian oil which would force Russia to depend on its services leading to greater income loss.
Traders are optimistic about an end to the conflict as US President Donald Trump stepped up his measures to end the war. Last Tuesday, US Ambassador Steven Witkoff spoke with Russian President Vladimir Putin as part of the diplomatic process being followed by the Trump administration.
Later, his team held several rounds of talks with their Ukrainian counterparts in Miami, Florida.
However, the discussions ended on Saturday without any significant breakthrough.
On Sunday, Trump said Ukrainian President Volodymyr Zelensky had not yet read the U.S. proposal and said he was “a little disappointed” in Zelensky, although Russia had welcomed the U.S. efforts.
Today, Zelensky met with European leaders in London to garner support from Ukraine’s allies (UK, France, Germany) before agreeing to Trump’s plan.
Later, Zelensky is set to meet NATO officials and European Commission President Ursula von der Leyen in Brussels.
Expectations of interest rate cut by the US Federal Reserve dominated business sentiment in the US
The Fed is holding a two-day meeting from tomorrow, after which the team will announce new interest rates.
Lower borrowing costs could accelerate US economic growth and boost fuel consumption by the world’s biggest oil consumer.
A recent report from the International Energy Administration for supply-versus-demand indicates that supply will exceed demand by about 2.4 million barrels per day for this year and double that for next year.
As tensions rise between the US and Venezuela, the US has brought approximately ten US ships to the Caribbean in its military mobilization against the nation.
Trump accuses Latin American nation of allowing drug trade to freely enter US
Venezuela denied this and alleged that the Trump administration was targeting Venezuela’s rich oil reserves under the guise of curbing the illegal drug trade.
Venezuela’s oil reserves amount to about 303 million barrels, more than Saudi Arabia’s 267 billion.
The movement of oil prices will be controlled by the Fed’s decision on Wednesday in the short term and the success in the Russia-Ukraine peace process in the long term.
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