Key Moments
- Brent February futures slipped 0.3% to $62.24 per barrel, while WTI fell 0.3% to $58.44 per barrel in Asian trading.
- High-level discussions in Moscow between U.S. envoys and President Vladimir Putin ended without a Ukraine peace compromise, keeping geopolitical risks elevated.
- The American Petroleum Institute reported a 2.48 million-barrel weekly draw in U.S. crude inventories for the week ended November 28.
Oil Prices Extend Previous Session’s Weakness
Investing.com – Crude prices edged lower in Asian trade on Wednesday, adding to the prior session’s decline as investors evaluated the implications of high-level talks between the United States and Russia on the conflict in Ukraine.
As of 22:05 ET (03:05 GMT), Brent Oil Futures for February delivery were down 0.3% at $62.24 per barrel. West Texas Intermediate (WTI) crude futures also slipped 0.3%, trading at $58.44 per barrel.
Both benchmarks had already fallen more than 1% on Tuesday, extending the recent bout of weakness in the oil market.
| Contract | Expiry | Price | Move | Session Context |
|---|---|---|---|---|
| Brent Oil Futures | February | $62.24 per barrel | -0.3% | After more than 1% drop on Tuesday |
| WTI Crude Futures | Not specified | $58.44 per barrel | -0.3% | After more than 1% drop on Tuesday |
Markets React to U.S.-Russia Dialogue on Ukraine
Oil traders focused heavily on diplomatic developments after a five-hour meeting at the Kremlin between Russian President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner concluded past midnight without a settlement on a peace agreement for Ukraine, according to the Kremlin.
Kremlin adviser Yuri Ushakov characterized the session as “constructive,” while emphasizing that core disagreements – particularly over territorial questions, including the status of the Donbas region – remained unresolved.
Simultaneously, Ukrainian strikes on Russian energy assets continued, sustaining the risk of potential disruptions to Russian crude and refined product exports. This ongoing threat helps maintain a geopolitical risk premium in the oil market, even as some of the rhetoric surrounding diplomacy has softened and suggested the possibility of reduced tensions.
“Also, Moscow warns that it might start striking ships of countries supporting Ukraine. This threat comes in light of recent Ukrainian attacks on Russian vessels. It increases tensions amid ongoing discussions between Russia and the US on Ukraine,” ING analysts said in a note.
The combination of unfinished diplomatic efforts and active military targeting of energy infrastructure has left traders grappling with a complex mix of downside pressure from macro sentiment and upside risk from potential supply shocks.
Inventory Data Adds Another Layer to the Outlook
On the supply side, new U.S. inventory figures added to the mixed picture. The latest weekly release from the American Petroleum Institute (API) indicated a drawdown of 2.48 million barrels in U.S. crude stockpiles for the week ended November 28, a larger reduction than in the previous week.
Such sizable draws are typically seen as supportive for crude prices, pointing to stronger consumption and a tighter supply-demand balance.
Despite that signal, market participants remained cautious ahead of the official weekly report from the U.S. Energy Information Administration (EIA) due later in the day. The EIA data are set to include updates on gasoline and distillate inventories, which could further influence sentiment across the oil complex.
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