Oil edges up as investors await clarity on supply, Russia-Ukraine deal
Oil prices settled up on Wednesday, bouncing back from one-month lows in the previous session, as investors assessed prospects of oversupply and talks over a Russia-Ukraine peace deal ahead of the U.S. Thanksgiving holiday.
Brent crude futures settled 65 cents, or 1.04%, higher to $63.13 a barrel, while U.S. West Texas Intermediate crude futures gained 70 cents, or 1.21%, at $58.65.
U.S. crude inventories climbed by 2.8 million barrels to 426.9 million barrels last week as imports surged, the Energy Information Administration said on Wednesday. Analysts had expected a 55,000-barrel rise.
U.S. energy firms cut the number of oil rigs by 12 to 407 this week, their lowest since September 2021, energy services firm Baker Hughes, said on Wednesday.
OPEC+ is likely to leave output levels unchanged at its meeting on Sunday, three OPEC+ sources told Reuters on Tuesday.
Offering some support to crude prices were rising expectations for a potential U.S. Federal Reserve interest rate cut in December. Lower rates would stimulate economic growth and bolster demand for oil.
DOUBTS LINGER
Investors awaited more clarity on Russia and Ukraine negotiations on Wednesday.
Ukrainian President Volodymyr Zelenskiy told European leaders on Tuesday that he was ready to advance a U.S.-backed framework for ending the war with Russia, driving both Brent crude and WTI down to one-month lows.
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 United States in the next few days to finalize a deal.
The Caspian Pipeline Consortium (CPC), which handles about 1.5% of global oil, said it resumed oil loadings overnight, having suspended loadings after a Ukrainian drone attack earlier in the week.
Source : Reuters.com
