Oil prices saw a slight rebound on Wednesday after hitting one-month lows in the previous session, as growing signals of progress toward a peace deal between Ukraine and Russia raised expectations that international sanctions on Russian oil could soon be lifted.
Farhan Saeed Reflects on ‘Tich Button’ Challenges, Calls Out Unprofessionalism on Set
Brent crude futures rose 19 cents, or 0.3%, to $62.67 a barrel at 0114 GMT, while U.S. West Texas Intermediate (WTI) crude gained 14 cents, or 0.24%, to $58.09 a barrel. Both benchmarks had fallen 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders he was prepared to move forward with a U.S.-backed framework for ending the war, noting that only a few points remained unresolved.
IG market analyst Tony Sycamore said in a note to clients that if a peace agreement is finalised, it could “rapidly dismantle Western sanctions on Russian energy exports,” potentially pushing WTI prices down to around $55. “For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter,” he added.
U.S. President Donald Trump said he had instructed his representatives to hold separate meetings with Russian President Vladimir Putin and Ukrainian officials. A Ukrainian official also indicated that Zelenskiy may travel to the United States in the coming days to finalise the deal with Trump.
Meanwhile, Western sanctions on Russia have tightened in recent weeks, and India—one of Moscow’s biggest oil buyers—is expected to reduce its Russian oil imports in December to their lowest level in three years.
Providing some support to crude prices, expectations have increased that the U.S. Federal Reserve may cut interest rates in December. Recent economic data showed weaker retail spending and easing inflation, raising hopes that lower borrowing costs could stimulate economic activity and boost oil demand.
