Oil holds steady after one-month low on high supply expectations
FILE PHOTO: A drone view of a drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo
LONDON :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 lost 5 cents to $62.43 a barrel by 0904 GMT. U.S. West Texas Intermediate crude futures were up 1 cent at $57.96.
"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.
U.S. crude stocks fell last week while fuel inventories rose, market sources said on Tuesday, citing American Petroleum Institute figures. U.S. crude stocks had been expected to rise by 1.86 million barrels in the week ending November 21, a Reuters poll showed.
Official stockpile data from the Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT).
