Oil prices fell for a second straight session on Wednesday as traders waited for the outcome of Russia-Ukraine peace talks. Markets are watching closely to see whether any progress could unlock additional supply at a time when concerns about a potential surplus are rising due to higher inventories.
By midday, prices steadied. Brent crude inched up 2 cents to $62.47 at 04:27 GMT, while U.S. West Texas Intermediate (WTI) rose 3 cents to $58.67.
According to ING analysts, this weakness comes despite ongoing Ukrainian attacks on Russian energy facilities. Moscow has also warned it may target ships belonging to countries that support Ukraine. Analysts noted Brent crude is now at its lowest level since October.
Peace talks remain uncertain
The Russian government said that Russia and the U.S. failed to reach any compromise on a potential peace agreement for Ukraine. The meeting between President Vladimir Putin and U.S. President Donald Trump’s top envoys lasted five hours but produced no breakthrough.
Oil markets are monitoring the talks closely. A successful deal could potentially remove sanctions on major Russian energy firms such as Rosneft and Lukoil, allowing restricted supplies to return to global markets.
However, comments from Putin on Tuesday added further uncertainty. He accused European nations of blocking U.S. efforts to end the war by proposing terms that Moscow found “absolutely unacceptable.” This has raised concerns that Russian oil will remain limited to buyers such as China and India, reducing the likelihood of any near-term supply relief.
Oversupply fears add pressure
Tony Sycamore, market analyst at IG, said that despite doubts about the peace negotiations, oversupply worries and weak demand continue to drag crude prices lower. He added that oil must stay above the mid-$50 range to avoid a sharper decline.
Ukraine’s ongoing strikes on Russian oil infrastructure have also intensified geopolitical risks. The conflict, which began with Russia’s invasion in 2022, has expanded, with recent drone attacks targeting export sites along the Black Sea coast.
Sources said the Caspian Pipeline Consortium, which transports oil from Russia and Kazakhstan, aims to finish repairs ahead of schedule on its third mooring point in the Black Sea. The goal is to restore full export capacity after another mooring was damaged in a drone strike.
U.S. inventories rise again
Rising U.S. stockpiles added further pressure to the market. According to the American Petroleum Institute, crude inventories rose by 2.48 million barrels in the week ending November 28. Gasoline stocks increased by 3.14 million barrels, and distillate inventories grew by 2.88 million barrels.
The U.S. Energy Information Administration is set to release the official government inventory report later on Wednesday.
