Brent crude futures were down 13 cents, or 0.21%, at $62.32 a barrel at 0221 GMT, after falling 1.1% in the previous session. U.S. West Texas Intermediate crude lost 12 cents, or 0.20%, to trade at $58.52 a barrel, after dropping 1.2% on Tuesday.
Russia and the U.S. did not reach a compromise on a possible peace deal for Ukraine after a five-hour meeting between President Vladimir Putin and U.S. President Donald Trump’s top envoys, the Russian government said on Wednesday.
Oil markets are awaiting the outcome of the talks to see if a deal could lead to the removal of sanctions on Russian companies, including major oil companies Rosneft and Lukoil, that would free up restricted oil supply.
Accusations from Putin on Tuesday that European powers are hindering U.S. attempts to end the war by putting forward proposals they knew would be “absolutely unacceptable” to Moscow have increased concerns Russian supply will continue to be restricted to buyers such as China and India as the talks may not lead to a deal.
Tony Sycamore, market analyst with IG, said in a note that despite these worries about the talks being inconclusive “concerns over an oversupply glut and soft demand continue to weigh on the crude oil price, which must remain above support in the mid $50’s to avoid a deeper setback.”
The war in Ukraine following Russia’s invasion in 2022 has widened and Ukraine is now regularly striking Russian oil infrastructure with drones.
Recent attacks on export sites on the Russian Black Sea coast have highlighted the geopolitical concerns stemming from the war.
Sources said on Tuesday that the Caspian Pipeline Consortium, which ships oil from Russia and Kazakhstan, aims to complete repairs on its third single point mooring in the Black Sea ahead of schedule, seeking to restore full oil export capacity after a drone attack hit one of its other moorings.
Rising U.S. inventories also added to the concerns about a crude surplus.
The American Petroleum Institute reported on Tuesday U.S. crude and fuel inventories rose last week, market sources said, citing the API figures.
Crude stocks rose by 2.48 million barrels in the week ended November 28, gasoline inventories increased by 3.14 million barrels, while distillate inventories rose by 2.88 million barrels, the API said, according to the sources.
The U.S. Energy Information Administration will release official government stockpile data later on Wednesday.
