World oil prices remained almost unchanged on Wednesday. Investors are closely monitoring the development of peace talks around Ukraine, as any shifts could drastically affect the energy market and sanctions policy against Russia. This is reported by Reuters, writes UNN.
Details
At 04:05 GMT, Brent crude futures rose by only 11 cents to $65.90 per barrel. American WTI with September delivery added 5 cents and cost $62.40, while the more active October contract was $61.90 (+13 cents). The day before, quotes lost more than 1% due to expectations of a possible de-escalation of the conflict, which could lead to an increase in global supply.
Analysts note that the market is in a state of uncertainty.
Protracted negotiations keep investors on edge
US President Donald Trump stated that he is ready to offer air support to Ukraine as part of a potential agreement, and also seeks to organize a meeting between Volodymyr Zelenskyy and Vladimir Putin, even considering Hungary as a possible venue. At the same time, Moscow has not confirmed participation in such negotiations. Experts emphasize that a quick resolution of the conflict currently seems unlikely.
The oil market was also affected by news from BP: due to flooding in Indiana, the operation of one of the largest US refineries was disrupted. This could temporarily reduce demand for raw materials, as the plant is a key fuel supplier in the Midwest.
Data on US inventories provided some support to prices: last week they decreased by 2.42 million barrels. Gasoline inventories decreased by almost a million barrels, while distillates, on the contrary, increased slightly. This indicates relatively stable demand for energy in the world's largest economy.
Recall
Oil prices fell amid discussions of possible trilateral talks involving Moscow, Kyiv, and Washington on ending the war in Ukraine. This could lead to the lifting of sanctions on Russian oil.