Oil prices finished higher on Wednesday, recovering from one-month lows as traders balanced ongoing oversupply concerns with renewed attention on Russia-Ukraine peace discussions ahead of the Thanksgiving holiday in the U.S. Brent settled at $63.13, up $0.65, while WTI rose $58.65, up $0.70 on the day.
The latest U.S. inventory report showed a 2.8 million-barrel build in crude stocks as imports surged, reinforcing expectations that the market is moving toward a sizable supply surplus. Analysts noted that the steady rise in inventories reflects weakening refinery activity and broader indications of ample global supply. U.S. drilling activity also continued to slip, with the active oil rig count falling to its lowest level since 2021.
Expectations for a potential Federal Reserve rate cut in December offered some support, as lower borrowing costs could bolster economic growth and fuel demand.
Negotiations over a possible Russia-Ukraine peace framework also remained in focus. President Zelenskiy signaled willingness to advance discussions based on a U.S.-supported proposal, though analysts cautioned that reaching a final agreement will be difficult. Market participants noted that any breakthrough could eventually accelerate the unwinding of Western sanctions on Russian energy exports, a factor that continues to weigh on sentiment.
Oil loadings at the Caspian Pipeline Consortium terminal resumed after a brief suspension tied to a Ukrainian drone strike earlier in the week, removing one short-term disruption from the supply outlook.