Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleOil prices stabilize as Ukraine peace talks and US interest rate decision loom, with potential impacts on global energy markets.
Dec 9 (Reuters) - Oil prices steadied on Tuesday after slipping 2% in the previous session, as market participants kept a close eye on peace talks to end Russia’s war in Ukraine and a looming decision on U.S. interest rates.
Brent crude futures were down 2 cents, or 0.03%, to $62.47 a barrel at 0101 GMT. U.S. West Texas Intermediate crude was at $58.84, down 4 cents, or 0.07%.
Both contracts fell by more than $1 on Monday after Iraq restored production at Lukoil's West Qurna 2 oilfield, one of the world's largest.
Ukraine will share a revised peace plan with the U.S. after talks in London between President Volodymyr Zelenskiy and the leaders of France, Germany and Britain.
"Oil is keeping to a tight trading range until we get a better idea of which way the peace talks will go," KCM Trade chief market analyst Tim Waterer said.
"If the talks break down, we expect oil to move higher, or if progress is made, and there is a likelihood of Russian supply to the global energy market resuming, prices would be expected to drop," he added.
According to sources familiar with the matter, the Group of Seven countries and the European Union are in talks to replace a price cap on Russian oil exports with a full maritime services ban in a bid to reduce Russia's oil revenue.
Also on the radar is the Federal Reserve’s policy decision, due Wednesday, with markets pricing in an 87% probability of a quarter-point rate reduction.
Looking ahead, analysts at BMI expect oversupply in the energy market, which they say will keep prices under pressure in 2026.
"Although much depends on the OPEC+ response to lower prices in the first quarter of 2026, we should see crude prices recover through the remainder of 2026 on the back of lower production from slowing U.S. shale activity and steady growth in consumption pulling markets closer into balance," BMI added.
(Reporting by Ashitha Shivaprasad in Bengaluru and Thomas Derpinghaus)
Brent crude is a major trading classification of crude oil originating from the North Sea. It serves as a benchmark for oil prices globally.
Interest rates are the cost of borrowing money or the return on savings, expressed as a percentage of the principal amount. They are influenced by central banks and economic conditions.
The Federal Reserve, often referred to as the Fed, is the central bank of the United States, responsible for implementing monetary policy and regulating financial institutions.
Oversupply in the energy market occurs when the supply of energy exceeds demand, leading to lower prices and potential financial strain on producers.
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