Oil prices slid on Wednesday in the international market after Russia agreed to US President Donald Trump’s proposal that Moscow and Kyiv stop attacking each other’s energy infrastructure temporarily, which could lead to more Russian oil entering global markets.
Brent crude futures were down 12 cents, or 0.2 percent, at $70.44 a barrel by 0106 GMT. US West Texas Intermediate crude (WTI) lost 15 cents, or 0.2 percent, to $66.75.
Russian President Vladimir Putin agreed on Tuesday to stop attacking Ukrainian energy facilities but stopped short of endorsing a full 30-day ceasefire that Trump hoped for.
Russia is one of the world’s top oil suppliers, but its output has waned since the beginning of the war, which resulted in sanctions on Russian energy.
A potential ceasefire could lead to an easing of sanctions, which might raise oil supply and ease prices, analysts said.
US tariffs on Canada, Mexico and China have raised recession fears, which also weighed on oil prices as that would have a dampening effect on demand for crude.
However, the declines in oil prices were limited by ongoing turmoil in the Middle East.
Trump vowed to continue his country’s assault on Yemen’s Houthis and said he would hold Iran responsible for any attacks carried out by the group that has disrupted shipping in the Red Sea.
Israeli air strikes in Gaza, meanwhile, killed at least 200 people, Palestinian health authorities said, which ended a week-long ceasefire and elevated risks of oil supply being threatened from the broader region.
US crude oil stocks data, meanwhile, painted a mixed picture, with crude stocks rising while fuel inventories fell.
Crude stocks were up 4.59 million barrels in the week ended March 14, market sources said, citing American Petroleum Institute figures on Tuesday.
Gasoline inventories fell by 1.71 million barrels and distillate stocks were down 2.15 million barrels, they said.
