Oil prices fall after US-Russia 30-day energy ceasefire

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Oil prices fell on Wednesday after Russia agreed to US President Donald Trump's proposal that Moscow and Kiev temporarily halt attacks on each other's energy infrastructure, which could lead to more Russian oil reaching global markets.

Oil prices fell on Wednesday after Russia agreed to US President Donald Trump's proposal that Moscow and Kiev temporarily halt attacks on each other's energy infrastructure, which could lead to more Russian oil reaching global markets.

Brent crude futures were down 23 cents, or 0.3 percent, to $70.33 a barrel as of 07:30 GMT. U.S. West Texas Intermediate (WTI) crude oil fell 25 cents, or 0.4 percent, to $66.65 a barrel.

Russian President Vladimir Putin agreed on Tuesday to halt attacks on Ukrainian energy facilities, but stopped short of endorsing the full 30-day cease-fire Trump wants.

Yeap Jun Rong, IG market strategist, said: "The agreement marks a positive step towards a final solution, and the cessation of attacks on Ukrainian energy facilities will reduce the risk of further oil supply disruptions and keep oil prices under some pressure."

russia is one of the world's largest oil suppliers, but its oil production has been declining since the war began, leading to Russian energy sanctions.

Analysts say a potential cease-fire could lead to an easing of sanctions, which could increase oil supplies and lower prices.

Tariffs imposed by the United States on Canada, Mexico and China have raised fears of a recession, which is also putting pressure on oil prices because it will curb demand for crude oil.

Goldman Sachs analysts said in a report on Wednesday that the oil market remained focused on the downside of prices despite rising tensions in the Middle East.

"Tariff hikes and high spare capacity bias our forecast for medium-term risks to the downside," analysts said."

trump vowed that the United States would continue to attack the Houthis in Yemen and said Iran would be held accountable for any attack on the group that disrupted shipping in the Red Sea.

Meanwhile, Palestinian health authorities say Israeli air strikes in Gaza have killed at least 200 people, ending a week-long ceasefire and raising the risk of a threat to the region's oil supplies.

meanwhile, the us crude oil inventory data was mixed, with crude oil stocks rising while fuel stocks fell.

Crude oil inventories rose by 4.59 million barrels in the week to March 14, market sources said Tuesday, citing data from the American Petroleum Institute. Gasoline stocks fell by 1.71 million barrels and distillate stocks fell by 2.15 million barrels.

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