Oil prices rose in Asian trading on Wednesday after industry data showed a larger-than-expected fall in U.S. crude inventories, while traders weighed prospects of a possible Russia-Ukraine peace initiative that could alter sanctions and supply dynamics.
As of 21:33 ET (01:33 GMT), Brent Oil Futures expiring in October rose 0.4% to $66.02 per barrel, while West Texas Intermediate (WTI) crude futures gained 0.3% to $61.94 per barrel.
Both contracts fell on Tuesday as the possibility of a Russia-Ukraine peace deal sparked supply surplus worries, at a time markets are already grappling with OPEC+ supply hikes.
US crude stockpiles jump more than expected - API
In an industry update, the American Petroleum Institute reported that U.S. crude oil stocks fell by 2.4 million barrels in the week ending August 15.
This decline was stronger than the 1.2 million-barrel fall analysts had forecast, following a 1.5 million-barrel build the prior week.
The deeper-than-expected draw lent support to oil prices.
Russia-Ukraine peace talks in focus
President Donald Trump said on Tuesday that he spoke with Russian President Vladimir Putin after hosting Ukrainian President Volodymyr Zelenskiy and European leaders at the White House on Monday.
Trump has said he was arranging a meeting between Moscow and Kyiv, followed by a potential trilateral summit involving the United States.
In his public remarks, Trump has pledged that the U.S. would help guarantee Ukraine’s security as part of any peace settlement, although he did not specify the form or scope of such assurances. Zelenskiy welcomed the announcement as "a major step forward,” and signaled readiness for direct talks with Russia.
Traders are watching closely for any sign that a peace framework could lead to easing of Western sanctions on Russian crude exports.
Russia remains one of the world’s top oil suppliers, but sanctions have capped some flows into Western markets since the invasion of Ukraine.
Investors also seek clarity on the secondary 25% U.S. tariffs on Indian goods from ongoing diplomacy. Trump has imposed additional duties on India for its purchase of Russian oil, set to take effect on August 27.
Source :
https://www.investing.com/news/commodities-news/oil-prices-rise-on-us-crude-inventory-drop-potential-russiaukraine-talks-eyed-4201102
