Oil Prices Edge Higher as Markets Watch Ukraine Peace Talks

Oil prices rose slightly on Wednesday, supported by U.S. inventory data and ongoing uncertainty around the Ukraine peace talks. Sanctions on Russian crude remain in place, and traders are cautious about the risk of further restrictions on buyers of its exports.

Brent and WTI Crude Prices

Brent crude futures gained 50 cents to $66.29 a barrel by 06:30 GMT.
U.S. West Texas Intermediate (WTI) crude for September delivery, which expires Wednesday, traded at $62.80 a barrel, up 45 cents.
The more active October contract added 53 cents to $62.30.

On Tuesday, oil prices had settled more than 1% lower on optimism that progress in peace talks could boost supply by easing sanctions on Russia.

Geopolitical Tensions Keep Market Cautious

Despite optimism, U.S. President Donald Trump warned that Russian President Vladimir Putin may not yet be ready to make a deal. Trump said he is arranging a meeting between Putin and Ukrainian President Volodymyr Zelenskiy, followed by a potential trilateral summit.

Russia, however, has not confirmed its participation.
“Crude markets are in limbo … prolonged peace talks will keep the market on edge,” said Emril Jamil, senior analyst at LSEG.

ANZ strategist Daniel Hynes added that the likelihood of a quick resolution to the conflict now seems low.

U.S. Refinery and Inventory Data

In the U.S., BP (NYSE: BP) reported disruptions at its 440,000-barrel-per-day Whiting refinery in Indiana after flooding from a severe thunderstorm. The site is one of the Midwest’s largest fuel producers, and reduced operations could impact regional crude demand.

Meanwhile, an industry report signaled steady U.S. crude and fuel demand. According to the American Petroleum Institute (API), U.S. crude inventories fell by 2.42 million barrels in the week ending August 15.

Gasoline stocks dropped by 956,000 barrels, while distillate inventories rose by 535,000 barrels.