09:01 AM EST, 02/13/2025 (MT Newswires) -- Oil prices fell to a seven-week low early on Thursday despite a boost to the International Energy Agency's 2025 demand-growth forecast as the prospect for an end to Russia's war on Ukraine eased a geopolitical risk premium in place for the past three years.

West Texas Intermediate crude oil for March delivery was last seen down US$0.79 to US$70.58 per barrel, the lowest since late December, while April Brent crude was down US$0.83 to US$74.35.

U.S. President Donald Trump on Wednesday said he held a call with Vladimir Putin, his Russian counterpart, and followed with a call to Ukraine President Volodymyr Zelensky to tell him he and Putin plan to meet to hold talks on ending the war without participation from Ukraine or Europe.

The prospect of an end to the war that began in 2014 and then ramped up with Russia's full-scale invasion in February 2022 and the potential end of sanctions on Russia's oil and gas production moved oil prices lower. Uncertainty remains amid concerns the United States is pushing for a deal that would see Russia keep the Ukrainian lands it currently controls and offers Ukraine no security guarantees.

"Oil prices have developed a knack of pricing future events in the here and now, therefore, with the prospect of unharnessed Russian oil making its way across the sea lanes, the gains made so far this week in crudes have been completely erased," PVM Oil Associates noted.

The International Energy Agency released its influential monthly Oil Market Report on Thursday. The agency raised its forecast for demand growth this year to 1.1-million barrels per day from 0.87 million, while reiterating it expects new supply to outpace demand growth in 2025.

"Global oil supply is on track to increase by 1.6 mb/d to 104.5 mb/d in 2025, with non-OPEC+ producers accounting for the bulk of the increase if OPEC+ voluntary cuts remain in place," the agency noted.