Schenker: United Nations-led process is a productive framework to make progress on a ceasefire

State Department's top Middle East diplomat Schenker says US has seen reports of a plane of Libya's Haftar going to Caracas and is trying to track down some 'ground truth' on that.

Meanwhile, Schenker says the Egyptian initiative on Libya has 'helpful' parts but the United Nations-led process is the more productive framework to make progress on a ceasefire.

Market implications

These headlines are two sides of the same coin. There are prospects of a ceasefire which would be bearish for oil prices but while uncertainty prevails, reports of heightened conflict, such as this, will continue to weigh on al already bearish outlook for oil prices. 

The key risk for energy markets, however, remains a resumption of production growth in the US shale patch, as prices sharply recover closer towards break-even levels. 

• WTI pressured, hopes of higher prices fading below $40 a barrel