Oil Rises as U.S-Led Talks for Ukraine Peace Stall


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   Oil Rises as U.S-Led Talks for Ukraine Peace Stall

   SECAUCUS, NJ (DTN) -- Crude futures jumped 2% on Monday (12/29), recovering 
most of the previous session's losses, as Ukraine peace talks stalled, keeping 
sanctions on Russian oil intact.

   The rise in oil futures was also supported by news that China's plans to 
boost fiscal spending in 2026 includes higher oil imports.

   The NYMEX WTI futures contract for February delivery rose $1.35 to $58.09 
bbl. Front-month ICE Brent increased by $1.27 to $61.51 bbl.

   ULSD futures contract for January delivery climbed $0.0278 to $2.1347 gallon.

   Front-month RBOB futures contract advanced $0.0236 to $1.731 gallon.

   Oil futures rose on reports that weekend talks between U.S. President Donald 
Trump and his Ukrainian counterpart Volodymyr Zelenskyy in Florida failed to 
produce an immediate agreement to end the nearly four-year war with Russia.

   Trump said he had made progress in the U.S.-brokered talks, but Zelenskyy 
said he asked the U.S. president for 30 to 50 years of security guarantees.

   Russian President Vladimir Putin was also reported to have spoken with Trump 
on the phone hours before the Florida meeting, warning that a temporary 
ceasefire would be used by Ukraine to regroup.

   Meanwhile, China announced Sunday (12/28) a major expansion of government 
spending for 2026 to stimulate an economy hampered by a cooling real estate 
sector and trade disputes with the United States.

   The Ministry of Finance in Beijing signaled that it intends to use more 
proactive fiscal policy to offset external headwinds while maintaining its 
massive crude oil stockpiling program to soak up global supply excess.




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