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Summary
- Ukraine peace deal likely to drag down prices
- Expected 2026 supply glut weighs on market
- OPEC+ likely to leave output levels unchanged
(Reuters) – Oil prices were steady on Wednesday after sliding to a one-month low in the previous session as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal.
Brent crude futures gained 13 cents to $62.61 a barrel by 1135 GMT. U.S. West Texas Intermediate crude futures were up 19 cents at $58.14.
“The market remains fundamentally skewed to the downside, with investors increasingly pricing in an oversupplied 2026 and no convincing demand catalyst to offset it,” said Phillip Nova analyst Priyanka Sachdeva.
Both Brent crude and WTI settled 89 cents down on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders that he was ready to advance a U.S.-backed framework for ending the war with Russia, with only a few points of disagreement remaining.
“If finalised, the deal could rapidly dismantle Western sanctions on Russian energy exports,” potentially driving WTI prices to about $55, IG market analyst Tony Sycamore said in a client note.
“For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter.”
U.S. President Donald Trump said he directed his representatives to meet separately with Russian President Vladimir Putin and Ukrainian officials. A Ukrainian official said Zelenskiy could visit the U.S. in the next few days to finalise a deal.
Britain, Europe and the U.S. have tightened sanctions on Russia recently and Indian purchases of Russian oil are set to hit their lowest for three years in December.
On the supply side, OPEC+ is likely to leave output levels unchanged at its meeting on Sunday, three OPEC+ sources told Reuters on Tuesday.
Meanwhile, The Caspian Pipeline Consortium (CPC) said it resumed oil loadings overnight, having suspended loadings after a Ukrainian drone attack earlier in the week.
U.S. crude stocks fell last week while fuel inventories rose, market sources said on Tuesday, citing American Petroleum Institute figures.
Official stockpile data from the Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT).
Reporting by Colleen Howe in Beijing and Siyi Liu in Singapore Editing by David Goodman
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