Brent crude closes below $59 as Russia-Ukraine peace talks continue

Oil drilling rigs

Oil prices fell at the close of trading today, Dec. 16, as markets monitored US-brokered peace talks between Russia and Ukraine, amid expectations that sanctions on Moscow would be eased if a peace agreement is reached.

Brent crude futures for February 2026 delivery fell 2.7% or $1.64 to $58.92 a barrel. WTI crude futures for January 2026 delivery dropped 2.73% or $1.55 to $55.27 a barrel, after hitting its lowest level since February 2021 at $54.98 earlier in the trading session.

Brent crude falling below $60 reflects investors' assessment that a peace deal could lead to increased Russian oil supply and a larger surplus in the market, said Janiv Shah, Analyst at Rystad Energy, according to Reuters.

Investors are awaiting the release of the American Petroleum Institute's report on US oil inventories, ahead of the official data release from the US Energy Information Administration on Dec. 17.