Oil prices recorded “dip” over 2% on Wednesdayas the US president Donald Trump made the first major diplomatic step to end the war in the Ukrainesomething he had promised pre -election, with the conflict between Russia and Ukraine having supported crude prices due to worries about global supplies, according to Reuters.

In particular, Brent slip by $ 1.82 or $ 2.36% at $ 75.18 a barrel and US crude WTI fell $ 1.95 or $ 2.66% to $ 71.37 a barrel.

In the low days, the WTI was losing up to more than $ 2 while today’s fall comes after three days of rising for the two contracts, with profits of 3.6% and 3.7% for WTi and Brent respectively.

It is noted that US President Donald Trump discussed For the war in Ukraine in telephone conversations with the Russian president Vladimir Putin and the Ukrainian president Volodimir Zelenski.

“Trump makes peace talks, I think he has removed part of the Risk Premium from oil prices right now”said Phil Flynn, a senior analyst of Price Futures Group.

In a post on Truth Social, Trump said that he and Putin “agreed to put our respective teams to start negotiations immediately” to end the war.

The Kremlin said Trump – Putin’s communication lasted one and a half hours and the Ukrainian president’s office said that Trump -Zelenski communication lasted about an hour.

Investors are also trying to appreciate the following moves by the US Federal Bank (FED) on reducing interest rates following statements made by Fed President Jerome Powell on Tuesday and after Wednesday’s data showed inflation in US inflation increased further from the expected in January.

“The combination of higher inflation and the possibility of peace in Ukraine causes a small sell -off market right now,” Flynn said.

Powell said the economy is in a good spot and that the Fed is not in a hurry to further reduce interest rates, but is ready to do so if inflation is reduced or the labor market is weakened.

Consumer prices published by the US Ministry of Labor showed surprisingly powerful inflation in the US in January, reinforcing fears that the hot economy and the forthcoming duties could undermine hopes of reducing interest rates. Higher interest rates can slow economic activity and reduce demand for oil.

“Inflation data were hot, reducing the chances of the Fed to reduce interest rates from September to December,” Flynn said.

Meanwhile, crude US reserves have increased greater than expected last week, the US EIA (EIA) Information (EIA) announced Wednesday. In the meantime, gasoline reserves have declined a sudden decrease. Elsewhere, Russia may be forced to limit its oil production in the coming months, as US sanctions prevent its access to tankers sailing to Asia and attacks of Ukrainian unmanned aircraft affect its refineries.

Opec, for his part, said in a monthly report that global oil demand would increase by 1.45 million barrels a day in 2025 and by 1.43 million barrels a day in 2026. Both forecasts remained unchanged in relation to with the previous month.