Category: 3. Business

Oil prices fell by 2% early on Tuesday as hope of a peace deal in Ukraine increased, sending Brent crude below $60 per barrel to the lowest level since May.

As of 9:47 a.m. ET on Tuesday, the front-month Brent Crude futures prices traded down by 2.10% below the $60 per barrel threshold, at $59.29.

The U.S. benchmark, WTI Crude, slipped by 2.22% and traded at $55.56 per barrel by early morning ET.

The U.S. oil price has plunged by 22% year to date and is on track for the worst performance since 2018. Brent, for its part, has lost 20% so far in 2025, marking its worst yearly performance since the pandemic year 2020.

The ongoing talks about a potential peace deal in Ukraine weighed on oil prices after reports of positive discussions and progress made.

Rising optimism over a potential peace deal to end the Russia-Ukraine conflict added to downward pressure as U.S. officials proposed NATO-style security guarantees for Ukraine in talks with Kyiv in Berlin.

U.S. President Donald Trump suggested that the negotiators are “closer now than we have been ever.”

A peace agreement could ease sanctions on Russia’s oil flows and raise supply on an already well-supplied global market.

“Oil markets will be watching developments closely, given the significant supply risk from sanctions on Russia. While Russian seaborne oil exports have held up well since the imposition of sanctions on Rosneft and Lukoil, this oil is still struggling to find buyers,” ING’s commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Tuesday.

“The result is a growing volume of Russian oil at sea. India, a key buyer of Russian oil since the Russia/Ukraine war began, will reportedly see imports of Russian crude fall to around 800k b/d this month, down from around 1.9m b/d in November,” the strategists added.

By Charles Kennedy for Oilprice.com

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The University of Manchester has played a central role in helping Rolls-Royce double the durability of some components in its jet engines operating in the Middle East.

Engineers and geologists in the “DUST” group at the University have developed a synthetic test dust supported by an EPSRC IAA Proof of Concept grant, led by Dr Merren Jones and Dr Alison Pawley, that accurately replicates the fine, talcum-powder-like particles commonly found in desert regions – materials known for causing accelerated wear on some aeroengine components.

This recreated dust has become an important element of Rolls-Royce’s extensive testing programme in Derby, where the company is working to improve the durability of engines used by airlines.

Sand ingested during take-off and climb can penetrate the hottest parts of an engine, corrode components, and block coolant holes. While not a safety issue, the damage reduces efficiency, increases the maintenance burden, and shortens component life.

Using the University of Manchester’s synthetic dust, Rolls-Royce has been able to replicate harsh Middle Eastern conditions inside its Testbed 80 facility in Sinfin.

Dr Nicholas Bojdo of the University’s DUST Research Group, said: “Standard test dusts do not contain the same chemical composition as the dust we see in the air of these increasingly busy airport hubs, therefore would not stress the engine in the same way. A bespoke recipe was needed to reproduce the molten glassy deposits that cause the damage in the hottest parts of the jet engine. Combining the expertise of geologists, who are familiar with the minerals of these regions and how they break down under high temperature, with engineers who can simulate the conditions inside a jet engine, has been pivotal in developing this bespoke test dust.”

This realistic testing allowed engineers to trial new coatings that better withstand heat and corrosion, and to redesign coolant holes so they are less prone to blockage.

According to Pat Hilton, Rolls-Royce’s Test Facilities Manager, the University’s contribution has helped increase the understanding of how dust behaves inside high-temperature turbines. Engine changes have been tested with the synthetic raw material and modified engines have returned to service, showing  a 60% increase in time between overhauls.

The DUST group (Drs Jones, Pawley, Covey-Crump and Bojdo)  continues to support this effort through InnovateUK-funded projects focusing on on-wing component inspection and digital tool development for virtual sand and dust tests.

The work forms part of a £1 billion durability programme aimed at doubling the lifespan of engines such as the Trent XWB-97 by 2028. Manchester’s breakthrough dust replica is an important tool to achieve this goal, helping Rolls-Royce strengthen performance across its Middle Eastern fleet.