Oil prices plummet as Ukraine-Russia peace deal seems within reach – Rystad Energy market note

Oil prices fell below $60 per barrel today, their lowest since February 2021, while European gas prices have moved in the same direction, dropping below EUR27 per MWh – around 16% lower than in mid-November. In ongoing negotiations in Germany, the US is said to have offered NATO-like security guarantees to Ukraine, a move that sparked optimism among European nations toward a resolution.

The offer of Article 5-like security guarantees, together with President Donald Trump’s comments that the conflict may be closer to resolution than ever, have led oil markets and investors to reassess supply-side risks.