RoydadNaft –  Crude oil prices declined for the second consecutive session in early Tuesday trading in Asian markets, pressured by two key factors: progress in Russia-Ukraine peace talks and weak economic data from China.

According to Roydad Naft, Brent crude futures decreased by 35 cents (0.6%) to $60.21 per barrel. U.S. West Texas Intermediate (WTI) crude futures declined by 30 cents (0.5%) to $56.52 per barrel.

ANZ analysts noted in a report: “Crude oil fell due to signs of optimism about reaching a peace agreement between Russia and Ukraine.” These developments have raised concerns that recent U.S. sanctions on Russian oil companies could eventually be lifted, adding more supply to an already oversupplied market.

On the geopolitical front, the U.S. has offered NATO-like security guarantees for Kyiv, and European negotiators reported progress in talks to end the war, although a deal on territorial concessions remains elusive.

Meanwhile, economic data released on Monday from China—the world’s largest oil importer—added further downward pressure. China’s factory output growth slowed to a 15-month low, while retail sales grew at their slowest pace since December 2022 during the COVID-19 pandemic. This data heightened concerns about the weakening of China’s strategy to rely on exports to offset sluggish domestic demand, darkening the outlook for oil demand—especially as the rapid expansion of electric vehicles continues to reduce fossil fuel consumption in the country.

These negative factors offset supply concerns stemming from the U.S. seizure of a Venezuelan oil tanker last week; analysts say excess floating storage and extensive Chinese purchases from Venezuela in anticipation of sanctions have limited the event’s impact.

In recent months, the oil market has been influenced by a complex mix of abundant OPEC+ supply, trade policy uncertainty, and slowing global demand, with current price levels marking some of the lowest ranges in years.