Oil prices were largely steady on Thursday, with trading activity expected to be limited due to the Thanksgiving holiday in the United States.
As of 05:43 ET (10:43 GMT), January Brent crude futures were up 0.1% at $62.64 per barrel. West Texas Intermediate (WTI) crude rose 0.3% to $58.81 per barrel.
Investors monitored discussions surrounding a U.S.-supported framework aimed at ending the war in Ukraine. U.S. envoy Steve Witkoff will travel to Moscow next week to present the proposal. The move has increased speculation about a possible ceasefire or agreement that could ease Western restrictions on Russian energy exports.
Any breakthrough on that front could add more supply to markets that already appear well stocked.
Data from the U.S. Energy Information Administration on Wednesday showed crude inventories rising by 2.8 million barrels for the week ending November 21. This sharply exceeded expectations for a modest increase of just 55,000 barrels.
Oil prices retreated after earlier gains as the inventory report reinforced worries that global supply may exceed demand heading into 2026. The EIA and several other forecasters continue to warn that rising production and swelling inventories are likely to pressure prices next year.
According to ING analysts Warren Patterson and Ewa Manthey, the oil market is currently caught between potential progress in Russia-Ukraine peace negotiations and the implications such progress could have on supply. They added that traders are also watching expectations for a potential U.S. Federal Reserve rate cut in December, which could help support oil demand.
Market sentiment is also being shaped by the upcoming OPEC+ meeting scheduled for this weekend.
The ING analysts said they expect the group to keep production unchanged. They noted that the fundamental outlook has not shifted much since the previous OPEC+ gathering.
