Oil prices fell for a second consecutive day on Wednesday as the outcome of the peace talks, which could boost supply, was awaited
Oil, fell for a second consecutive day on Wednesday as the outcome of the Russia-Ukraine peace talks, which could boost supply, was awaited. Rising inventories also fueled concerns about a potential surplus.
Brent crude rose 2 cents, or 0.03%, to $62.47 at 04:27 GMT, while WTI crude rose 3 cents, or 0.05%, to $58.67.
This price weakness continues despite Ukraine's ongoing attacks on Russian energy infrastructure. In this situation, Russia's ability to trade freely in the market under a deal will never boost prices.
Moscow also warns that countries supporting Ukraine could begin attacking their ships.
Brent crude is at its lowest level since October.
The Russian government announced on Wednesday that, after five hours of talks between Putin and Trump's senior representatives, Russia and the US have failed to reach an agreement on a potential peace deal for Ukraine.
Oil markets are awaiting the outcome of the talks to see if an agreement could lead to the lifting of sanctions imposed on Russian companies, including major oil majors Rosneft and Lukoil. These sanction lifting would free up constrained oil supplies.
However, the current situation has heightened concerns that Russian supply will remain constrained by buyers like China and India.
Despite concerns that the talks will fail, oversupply and weak demand continue to negatively impact crude oil prices, and the market is doing everything it can to avoid a deeper downturn.
Following Russia's invasion in 2022, the war in Ukraine has widened, and Ukraine now regularly strikes Russian oil infrastructure with drones.
Recent attacks on Russian export facilities on the Black Sea coast have highlighted the geopolitical concerns stemming from the war.
Rising US inventories have also fueled concerns about a crude oil glut.
According to data from the American Petroleum Institute (API), US crude oil and fuel inventories increased last week.
According to the data, crude oil inventories increased by 2.48 million barrels in the week ending November 28, gasoline inventories by 3.14 million barrels, and distillate oil inventories by 2.88 million barrels.
The US Energy Information Administration (EIA) will release official government inventory data on Wednesday.
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