Oil prices keep rising on global markets — Bloomberg
Illustrative photo: Oil shows an upward trend (Getty Images)
Global oil prices continue to rise amid peace talks to end the war in Ukraine and tensions between the United States and Venezuela, Bloomberg reports.
As of the morning of December 4, Brent crude oil was trading at around $63 per barrel after rising 0.4% on December 3. The price of West Texas Intermediate exceeded $59 after US President Donald Trump's statements about uncertainty regarding a peace agreement in Ukraine.
"High-level negotiations between US and Russian officials have failed to produce a diplomatic breakthrough in ending the nearly four-year war in Ukraine, leaving the prospects of a near-term end to the conflict remote," RBC Capital Markets said in its forecast.
Tensions surrounding Venezuela are playing a separate role in the growth. US troops are concentrating in the region, adding a risk premium to oil prices from this region. There are also fears of a shortage, which is expected to rise to record levels next year.
At the same time, there is a risk of low demand and a chance that oil will begin to lose value. The OPEC+ cartel has begun to restore frozen production capacity, and Chinese oil purchases have helped keep markets afloat, but they will remain low until mid-2026.
Starting on November 26, prices began to rise after falling to a monthly low. On November 27, prices fell again amid forecasts of a potential ceasefire, but this trend did not last long.
Starting December 1, the market resumed growth after OPEC+ countries confirmed their intention to maintain stable production levels. On December 2, prices remained relatively stable despite Ukraine's drone strikes on Russian oil refineries, and oil began to rise gradually on December 3.
