Oil prices rose in early Asian trading on Wednesday, supported by a bigger-than-expected decline in U.S. crude inventories and hopes that renewed Russia-Ukraine negotiations could influence sanctions and global supply flows.
By 21:33 ET (01:33 GMT), October Brent futures were up 0.4% at $66.02 per barrel, while WTI crude added 0.3% to reach $61.94 per barrel. Both benchmarks had fallen on Tuesday, as traders weighed concerns that a potential peace deal might release additional crude into the market just as OPEC+ production rises.
Stronger-than-expected inventory drop in the U.S.
According to the American Petroleum Institute, U.S. crude stocks fell by 2.4 million barrels in the week ending August 15, exceeding the anticipated 1.2 million-barrel decline and following a 1.5 million-barrel build the week prior. The unexpected draw helped support prices amid an otherwise cautious market.
Eyes on Russia-Ukraine diplomacy
Former President Donald Trump confirmed that he spoke with Russian President Vladimir Putin following meetings at the White House with Ukrainian President Volodymyr Zelenskiy and European leaders on Monday. Trump is reportedly arranging direct talks between Moscow and Kyiv, with the possibility of a trilateral summit involving the U.S.
Trump indicated that the U.S. would play a role in guaranteeing Ukraine’s security under any agreement, though he provided no details on the exact measures. Zelenskiy welcomed the news as “a significant step forward” and signaled readiness for direct negotiations with Russia.
Investors are closely watching whether any progress on peace could lead to a loosening of sanctions that have limited Russian oil exports to Western markets since the Ukraine conflict began.
In addition, markets are awaiting clarity on the U.S. secondary 25% tariffs on Indian imports, imposed over India’s purchase of Russian oil, which are scheduled to take effect on August 27.
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