LONDON, Dec 16 (Reuters): Oil prices fell on Tuesday to below $60 a barrel - the lowest since May this year - as prospects for a Russia-Ukraine peace deal appeared to strengthen, raising expectations of a potential easing of sanctions.
Brent crude futures fell 81 cents, or around 1.3%, to $59.75 a barrel at 1214 GMT, while US West Texas Intermediate crude was trading at $55.98 a barrel, down 84 cents, or nearly 1.5%.
"Brent has dropped this morning to below $60 per barrel for the first time in months, as the market assesses a potential peace deal resulting in additional Russian volumes becoming available and oversupplying the market further," said Rystad analyst Janiv Shah.
The US offered to provide NATO-style security guarantees for Kyiv and European negotiators reported progress in talks on Monday to end Russia's war in Ukraine, sparking optimism that an end to the conflict was closer.
Russia, meanwhile, said it was not willing to make any territorial concessions in talks on ending the Ukraine war, state news agency TASS quoted Deputy Foreign Minister Sergei Ryabkov as saying.
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