Follow-Up
Oil prices fell on Wednesday as investors await the outcome of discussions aimed at ending the war in Ukraine, which could lead to an increase in supply amid concerns of an oversupply with rising inventories.
Brent crude futures dropped by 13 cents, or 0.21%, to $62.32 per barrel, after a decline of 1.1% in the previous session.
West Texas Intermediate crude lost 12 cents, or 0.20%, to $58.52 per barrel, having fallen by 1.2% on Tuesday.
The Russian government stated today that Russia and the United States have not reached a compromise regarding a potential peace agreement to conclude the war in Ukraine.
Oil markets are keenly awaiting the results of the talks to see if an agreement could lead to the lifting of sanctions imposed on Russian companies, including the oil giants Rosneft and Lukoil.
Tony Sycamore, a market analyst at IG, noted that despite concerns about the talks ending without a decisive outcome, “the worry about oversupply and weak demand continues to pressure crude oil prices, which need to remain above the support level in the mid-$50s to avoid larger declines.”
