Oil prices edged higher on Wednesday after falling to a one-month low in the previous session, although expectations of a supply glut and progress toward a potential Russia-Ukraine peace agreement kept gains limited.
Brent crude futures rose 28 cents, or 0.45%, to $62.76 a barrel at 07:08 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 26 cents, or 0.45%, to $58.27 a barrel.
“These mild gains look more like a technical pause than a meaningful shift,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “Any upward moves we see today or in the coming days are mostly driven by softer inventory signals and short-covering, but these rallies will likely remain brief and fragile.”
She added that the overall outlook continues to lean bearish, with investors increasingly pricing in an oversupplied market in 2026 and no strong demand catalyst on the horizon.
Both Brent and WTI fell 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders he was prepared to move forward with a U.S.-supported framework to end the conflict with Russia, noting that only a few issues remained unresolved.
“If finalized, the agreement could quickly lead to the removal of Western sanctions on Russian energy exports,” said IG market analyst Tony Sycamore in a note. He added that such a development could push WTI down toward $55 a barrel.
“For now, the market is waiting for clearer signals, but the bias still points to lower prices unless negotiations collapse.”
U.S. President Donald Trump said he has instructed his team to meet separately with Russian President Vladimir Putin and Ukrainian officials. A Ukrainian official also suggested that Zelenskiy may travel to the U.S. in the coming days to work toward a final agreement.
Meanwhile, Western governments have tightened sanctions on Russia in recent weeks, and India’s purchases of Russian oil—critical for Moscow—are expected to fall to a three-year low in December.
Market sources, citing American Petroleum Institute data, said U.S. crude inventories fell last week, even as fuel stockpiles increased. Analysts in a Reuters poll had previously forecast crude stocks rising by 1.86 million barrels for the week ending November 21.
Official inventory data from the Energy Information Administration is scheduled to be released on Wednesday at 10:30 a.m. ET (15:30 GMT).
Crude prices have also drawn support from expectations of a potential Federal Reserve interest rate cut in December. Recent U.S. economic data showing weaker retail spending and softer inflation has strengthened this view. Lower interest rates generally stimulate economic activity and can boost oil demand.
