Oil Prices Rise After Hitting One-Month Low
Oil prices rose after sliding to a one-month low in the previous session.
Brent crude futures increased by 27 cents, or 0.43 per cent, to $62.75 a barrel at 05:12 a.m. WAT on Wednesday, while United States West Texas Intermediate crude futures gained 24 cents, or 0.41 per cent, to $58.19 a barrel.
Both Brent crude and WTI settled down by 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders that he was ready to advance a United States-backed framework for ending the war with Russia, with only a few points of disagreement remaining.
“If finalised, the deal could rapidly dismantle Western sanctions on Russian energy exports, potentially driving WTI prices to around $55,” IG market analyst Tony Sycamore said in a client note quoted by Reuters.
“For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter.”
United States President Donald Trump said he directed his representatives to meet separately with Russian President Vladimir Putin and Ukrainian officials, while a Ukrainian official said Zelenskiy could visit the United States in the coming days to finalise a deal.
Britain, Europe, and the United States have recently tightened sanctions on Russia in a stepped-up pressure campaign, and Russian oil purchases by India, a key buyer, are set to hit their lowest level in three years in December.
United States crude stocks fell last week while fuel inventories rose. The country’s crude stocks had previously been estimated in a Reuters poll to have risen by 1.86 million barrels in the week ending 21 November.
Official stockpile data from the Energy Information Administration is due on Wednesday at 10:30 a.m. ET (15:30 GMT).
Crude prices have received some support from expectations of a potential United States Federal Reserve interest rate cut in December, following economic data releases showing lower retail spending and softer inflation. Lower rates would stimulate economic growth and bolster demand for oil.
