Oil prices rose on Wednesday, fueled by renewed supply worries and the uncertainty surrounding peace negotiations aimed at ending Russia’s invasion of Ukraine. Brent crude futures were trading at $65.93 per barrel, up 14 cents or 0.21%, while U.S. West Texas Intermediate (WTI) September futures climbed 37 cents to $62.72 per barrel. The October WTI contract also rose 15 cents to $61.92 per barrel.
Earlier optimism that a deal to end the conflict might be near had pushed prices down over 1% on Tuesday, as easing sanctions on Russian crude could have increased global supply. However, the momentum shifted as prospects for a swift resolution dimmed.
U.S. President Donald Trump has been actively arranging talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, potentially followed by a trilateral summit. Trump even discussed a possible meeting between the leaders in Hungary with Prime Minister Viktor Orban. Despite these efforts, Russia has not confirmed its participation, leaving the likelihood of a quick resolution in doubt.
“The likelihood of a quick resolution to the conflict with Russia now seems unlikely,” noted Daniel Hynes, senior commodity strategist at ANZ, highlighting continued uncertainty in the market.
Adding to the supply concerns, BP reported disruptions at its 440,000-barrel-per-day refinery in Whiting, Indiana, caused by severe flooding from overnight thunderstorms. The facility, a key fuel producer for the U.S. Midwest, may see reduced crude demand in the near term.
With peace talks stalling and operational challenges at major refineries, oil markets are bracing for potential volatility in the coming weeks, keeping traders and consumers on alert.