WTI oil prices fell below $55 amid concerns that the Chinese economy would impact demand.

 

WTI oil prices plunged more than 1%, falling below $55, amid concerns about a slowdown in the Chinese economy, which would impact oil demand.

China reported that industrial production slowed to its lowest level in 15 months, while retail sales expanded at their slowest pace since December 2022, the start of the COVID-19 pandemic.

Furthermore, oil prices were pressured by progress in peace negotiations to end the conflict between Russia and Ukraine. This could be a crucial step in ending the nearly four-year-long war and pave the way for the lifting of sanctions against Russia, allowing it to export oil globally.

U.S. President Donald Trump stated that a peace agreement to end the war between Russia and Ukraine is closer than ever before, following ongoing talks between European leaders and Ukrainian President Volodymyr Zelenskyy in Berlin.

President Trump's statement came after hours of discussions between U.S., European, NATO leaders, and President Zelenskyy in Berlin to negotiate an end to the war in Ukraine.

European leaders agreed to contribute to Ukraine's security. After President Zelenskyy signaled that Ukraine was ready to sacrifice its hopes of joining the North Atlantic Treaty Organization (NATO) in exchange for security guarantees from the West.