Oil prices edged higher on Wednesday after falling to a one-month low in the previous session. Brent crude rose 27 cents, reaching $62.75 per barrel, while U.S. West Texas Intermediate (WTI) increased 24 cents to $58.19 per barrel.
The previous dip came amid reports that Ukrainian President Volodymyr Zelenskiy was ready to advance a U.S.-backed plan to end the Russia-Ukraine conflict, potentially lifting Western sanctions on Russian energy.
Analysts warn that if finalised, this could push oil prices lower.
Meanwhile, global sanctions on Russia have intensified, and India, the country’s key oil buyer is expected to import Russian crude at its lowest level in three years come December.
In the U.S., crude inventories dropped last week, even as fuel stockpiles rose. Market watchers are awaiting official stockpile figures from the Energy Information Administration.
Additionally, expectations of a potential Federal Reserve interest rate cut in December, triggered by slowing inflation and weaker retail spending, are supporting crude prices by suggesting stronger future oil demand.
Overall, the market is balancing between geopolitical developments, global supply adjustments, and economic signals that could influence oil demand.
