United States Brent Oil Fund LP (NYSE:BNO) shares are trading lower on Friday amid hopes of a Ukraine peace deal that could add supply to an already oversaturated market, pushing oil prices down.
United States Brent Oil Fund, LP ETV stock is trending lower. Why is BNO stock trading lower?
What Happened: Oil prices fell more than $1 a barrel as traders take into account the possibility of a growing global supply surplus and a fading war‑risk premium tied to the Russia‑Ukraine conflict, according to Reuters.
Ukrainian President Volodymyr Zelenskyy is scheduled to meet with U.S. President Donald Trump in Florida on Sunday to discuss a potential framework for ending the war. Zelenskyy noted that “a lot can be decided before the New Year.”
A peace deal could allow for sanctions on Russia’s oil sector to be lifted, potentially giving the chance for Russian barrels to come back into a market already struggling with excess supply.
“Geopolitical premiums have provided near-term price support, but have not materially shifted the underlying oversupply narrative,” Aegis Hedging analysts said Friday.
The Kremlin reportedly confirmed that a foreign policy adviser to President Vladimir Putin has been in contact with U.S. officials after receiving proposals related to a possible peace agreement.
Brent crude slipped $1.03, or 1.65%, to $61.21 a barrel, while U.S. West Texas Intermediate dropped $1.05, or 1.8%, to $57.30. Both benchmarks are on pace for their biggest yearly decline since 2020, down 18% and 20% respectively.
BNO Price Action: United States Brent Oil Fund shares were down 1.79% at $28.19 at the time of publication on Friday, according to Benzinga Pro.
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