Crude Oil Prices Increase over U.S. Demand Optimism
Crude oil prices increase in the global commodity market on Wednesday on the back of U.S. demand optimism following a sharp decline in inventories. The price reflects tentative progress in Russia-Ukraine peace discussions, limiting upward price movements by easing supply concerns.
International benchmark Brent crude was trading at $62.46 per barrel, up 0.1% from the previous close of $62.34. US benchmark West Texas Intermediate (WTI) also increased by about 0.1% to $58.59, compared to $58.51 in the prior session.
The American Petroleum Institute (API) estimated that US commercial crude stockpiles fell by 2.48 million barrels last week, compared with market expectations for a decline of around 1.9 million barrels.
The larger-than-expected draw suggested resilient demand in the world’s largest oil-consuming economy, providing upward support for prices. Official data from the US Energy Information Administration (EIA) will be released later in the day.
On the other hand, developments in Russia-Ukraine peace efforts limited further price gains by easing the geopolitical risk premium.
Kremlin foreign policy adviser Yury Ushakov said that during talks between President Vladimir Putin and representatives of US President Donald Trump, the parties discussed four documents related to a potential settlement of the Ukraine conflict.
Ushakov described the meeting as “useful, constructive and informative,” noting that both sides explored opportunities for long-term, peaceful resolution.
He added that Putin had voiced critical – even negative – views on several proposals but emphasised that both sides expressed readiness to continue working together toward a durable peace in Ukraine.
Separately, ahead of his meeting in Moscow with Trump’s special envoy Steve Witkoff and Trump’s son-in-law Jared Kushner, Putin accused Ukraine of committing “piracy” in the Black Sea by attacking oil tankers. He warned that Russia would expand strikes on Ukrainian ports and vessels entering those ports in retaliation.
Such developments tend to weigh on oil prices, as signs of Russia-Ukraine diplomatic progress reduce the geopolitical risk premium and lower expectations of major supply disruptions, tempering earlier fears of an escalation that could threaten exports. GTCO Delivers 52% Gain in 11-Month Amidst Earnings Pressure
