Oil prices edged higher on Wednesday after U.S.–Russia negotiations failed to produce a breakthrough on ending the war in Ukraine, tempering expectations that sanctions on Moscow’s energy sector might soon be lifted. Brent rose $0.22 to settle at $62.67, while WTI gained $0.31 to close at $58.95, partially recovering from Tuesday’s pullback.
Fresh inventory figures from the U.S. Energy Information Administration added to oversupply concerns. Crude stocks rose by 574,000 barrels last week against expectations for a draw, while gasoline inventories jumped by more than 4.5 million barrels and distillate supplies grew over 2 million barrels. The data pointed to softer U.S. demand heading into year-end and reinforced the view that global supply remains more than adequate.
Geopolitical tension continued to shape sentiment. A five-hour meeting between Russian President Vladimir Putin and senior U.S. envoys ended without agreement, keeping sanctions on Russian producers—including Rosneft and Lukoil—in place for now. Market participants remain focused on whether a peace framework could eventually unlock restricted Russian barrels, though Moscow said European proposals remain “unacceptable.”
Meanwhile, recent Ukrainian strikes on export terminals and tankers along Russia’s Black Sea coast underscored the risk of further supply disruptions. Putin warned that Russia may retaliate against vessels from countries aiding Ukraine, adding another layer of uncertainty to trade flows.
Despite Wednesday’s modest gain, traders noted that the market remains highly sensitive to shifting signals on both peace talks and supply fundamentals.