Oil prices fell for a second straight session on Wednesday as traders awaited the outcome of Russian-Ukrainian peace talks that could increase supply, and fears of a potential oil glut intensified amid rising inventories, UNN reports with reference to Reuters.
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Prices later stabilized: Brent crude rose 2 cents, or 0.03%, to $62.47 by 04:27 GMT (06:27 Kyiv time). At the same time, US West Texas Intermediate crude rose 3 cents, or 0.05%, to $58.67.
"Weakness persists despite continued Ukrainian attacks on Russian energy infrastructure. In addition, Moscow warns that it may start striking ships of countries supporting Ukraine," ING analysts said in a note published on Wednesday.
Analysts noted that Brent crude oil prices are at their lowest level since October.
The Russian government said on Wednesday that Russia and the United States had not reached a compromise on a possible peace deal for Ukraine after a five-hour meeting between Kremlin head Vladimir Putin and senior representatives of US President Donald Trump.
Oil markets are awaiting the outcome of the talks to see if a deal could lead to the lifting of sanctions on Russian companies, including major oil companies Rosneft and Lukoil, which would ease tight oil supplies.
Putin's accusation on Tuesday that European states were hindering US attempts to end the war by making proposals they knew would be "absolutely unacceptable" to Moscow heightened fears that supplies from Russia would still be limited to buyers such as China and India, as talks may not lead to a deal.
Tony Sycamore, an IG market analyst, noted in his note that despite fears of fruitless negotiations, "concerns about oversupply and weak demand continue to put pressure on the price of oil, which must remain above the mid-$50 support level to avoid a deeper decline."
Sources said on Tuesday that the Caspian Pipeline Consortium, which transports oil from Russia and Kazakhstan, intends to complete repairs to its third single-point mooring in the Black Sea ahead of schedule, seeking to restore full oil export capacity after a drone attack on one of its other moorings.
Rising US oil inventories also fueled fears of an oil glut. The American Petroleum Institute (API) reported on Tuesday that US oil and fuel inventories rose last week, the publication writes, citing sources.
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