Global oil prices climbed on Wednesday, recovering from the previous session’s decline, after high-stakes U.S.-Russia discussions ended without progress and fresh geopolitical risks resurfaced in the market.
Brent rises to $63.15, WTI pushes toward $59.40
By 08:05 ET (13:05 GMT), Brent futures for February delivery were up 1.1% at $63.15 per barrel, while WTI rose 1.3% to $59.38. Both benchmarks had slipped more than 1% on Tuesday, but the renewed wave of geopolitical tension quickly restored upward pressure on crude.
No breakthrough in hours-long Kremlin meeting
A late-night meeting in Moscow between Russian President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner ended without meaningful progress toward ending the conflict in Ukraine. Despite describing the talks as “constructive,” Kremlin adviser Yuri Ushakov noted that critical disagreements, particularly over the status of the Donbas region, remain unresolved.
The lack of movement reaffirmed what analysts have warned for months: the oil market does not expect a peace deal anytime soon. Goldman Sachs highlighted that traders and prediction platforms continue to assign a low probability to a near-term resolution or any removal of sanctions on Russian crude.
Ukrainian strikes keep supply risks elevated
The broader security environment in the region added further support to prices. Ukrainian forces intensified strikes on Russian energy infrastructure, renewing concerns about potential disruptions to crude and fuel flows. These ongoing attacks maintain a geopolitical risk premium around oil, even as diplomatic channels reopen.
ING analysts also noted rising maritime tensions. Moscow has warned it may begin targeting vessels belonging to nations supporting Ukraine, a threat emerging just days after Ukrainian strikes on Russian naval assets. Any escalation at sea could complicate global shipping routes and put renewed pressure on supply chains.
U.S. crude inventories fall more than expected
Market sentiment was also influenced by fresh data from the American Petroleum Institute (API). The week ending November 28 saw U.S. crude inventories fall by 2.48 million barrels, a notably sharper draw than the prior week. Such declines typically signal stronger demand or tightening supply, both of which lean bullish for oil markets.
However, traders remain cautious ahead of official data from the U.S. Energy Information Administration (EIA). The upcoming report will offer key insights into gasoline and distillate stock movements, which could either reinforce or temper Wednesday’s rebound.
What traders are watching next
Market participants are now positioning around three major forces: stalled diplomacy, heightened geopolitical threats, and U.S. inventory dynamics. With none of these factors showing signs of quick resolution, volatility is expected to persist, and any new developments on the Ukraine war front could rapidly shift price momentum.
