Brent and WTI Gain Amid Geopolitical Tensions
Brent crude rose 78 cents, or 1.3%, to $63.23 per barrel at 1010 GMT, while U.S. West Texas Intermediate (WTI) increased 85 cents, or 1.5%, to $59.49. Both benchmarks had fallen by more than 1% in the previous session.
Goldman Sachs analysts noted that oil markets currently assign a low probability to a near-term peace deal and the lifting of sanctions on Russian oil, suggesting that geopolitical tensions remain a major driver of price movements.
Talks Fail to Produce Agreement
The Russian government reported that a five-hour meeting between Russian President Vladimir Putin and U.S. envoys representing President Donald Trump failed to reach a compromise. Markets were closely monitoring the discussions to determine whether a deal might lift sanctions on major Russian oil companies, such as Rosneft and Lukoil, which would allow restricted oil supplies to return to the global market.
President Putin criticized European powers for presenting proposals he considered “absolutely unacceptable” to Moscow, arguing that their actions were obstructing U.S. efforts to end the conflict.
Geopolitical Risks Persist
Recent Ukrainian strikes on oil export facilities along the Russian Black Sea coast have further heightened geopolitical concerns. Ukraine also targeted two sanctioned tankers last week involved in transporting Russian oil.
Putin warned that Russia would take countermeasures against tankers from countries assisting Ukraine, a development analysts said could increase geopolitical risks and continue to support oil prices.
U.S. Inventories Limit Further Gains
Despite the geopolitical backdrop, rising U.S. crude inventories constrained additional price gains. According to market sources citing the American Petroleum Institute (API), crude stocks rose by 2.48 million barrels in the week ending November 28. Gasoline inventories increased by 3.14 million barrels, while distillate stocks climbed by 2.88 million barrels.
The U.S. Energy Information Administration (EIA) is set to release official government data on stockpiles later on Wednesday, which could influence short-term price movements.
Market Outlook
The combination of stalled diplomacy, ongoing geopolitical risks, and mixed inventory data suggests that oil markets are likely to remain volatile in the near term. Traders will continue to weigh the potential for further sanctions, supply disruptions, and broader global demand trends as the Ukraine conflict and holiday season progress.