Oil gained as traders assessed discussions between the US and Russia that have so far failed to settle the war in Ukraine, while attacks on Moscow’s oil assets continued.
Despite the lack of direction in previous days, Brent was trading close to $63. President Vladimir Putin and US envoys Steve Witkoff and Jared Kushner had "very useful" discussions, according to the Kremlin, but they were unable to come to an agreement on a strategy to put an end to the violence in Ukraine. European military stocks climbed and Ukrainian bonds sank.
The negotiations came against the backdrop of another attack on a Russia-linked ship, but it remains unclear who carried out the action.
According to the state-run Rossiya 24 TV channel, Putin issued a warning that if attacks on the country's fleet continue, Moscow would think about attacking the ships of nations that assist Ukraine.
“The Brent crude price remained roughly unchanged in the low $60s over the last week as Russia-Ukraine peace talks continue,” Goldman Sachs Group Inc. analysts including Yulia Zhestkova Grigsby stated. “Oil markets and prediction markets do not appear to price a large probability of a near-term peace agreement and removal of the sanctions on Russia oil.”
Concerns about an increasing excess are partially offset by geopolitical uncertainties, which keep the market uneasy and offer a risk premium to prices.
This includes US rhetoric against Venezuela, as US President Donald Trump has hinted that the Pentagon will soon begin using ground strikes to combat drug gangs.
In the meantime, an industry report revealed that while gasoline inventories grew last week, US crude stockpiles rose by almost 2.5 million barrels nationally. Government numbers, including on demand, are coming later Wednesday.
