“Brent crude wiggling between peace and war. Brent crude traded down 1.4% to $62.48/b yesterday with a low of the day at $61.6/b. Last Tuesday it at times traded above $65/b and it has fallen around $2.5/b since then on hopes a Russia/Ukraine peace will materialize out of the latest initiative. But optimism for such an outcome faded a bit yesterday as it is far from clear that Russia will be onboard with the increasingly revised peace plan. Two important concessions has come out of this. One is that Ukraine seems to accept that it will never get back the areas conquered by Russia so far. And secondly the acceptance by Russia that Ukraine will need to have a sizable defensive force in place for security reasons. There is a lot of optimism that these essential concessions will lead to a peace agreement and that helps to keep the oil price down.”
Morten W. Langer
