Oil Prices Stabilize Amid Anticipation of International Talks and Supply Fluctuations

Global oil markets demonstrated stability in trading activities on Wednesday following a near 1% decline, amid concerns regarding the increasing disparity between supply and demand, which has capped major gains. Investors are closely monitoring diplomatic developments, particularly the peace talks between Russia and Ukraine.

Brent crude futures saw a slight increase of 0.1%, stabilizing at $62.00 per barrel. Similarly, U.S. West Texas Intermediate rose by the same percentage to $58.32 per barrel.

In its market analysis, ING Bank cautioned in a research note that Russian supplies continue to pose a threat to market balance, despite a general tendency towards overproduction. The bank noted that "Russian oil exports by sea remain at a good level" but indicated via Reuters that "these barrels are increasingly struggling to find buyers," which could lead to a decline in Russian production if demand remains weak.

Politically, Ukrainian President Volodymyr Zelensky stated that his country and its European partners will soon present "revised documents" regarding the peace plan to the U.S. following intensive diplomatic efforts. Analysts anticipate that a potential peace agreement could lead to a relaxation of international sanctions against Russian companies, allowing for an increase in currently restricted oil supplies.

Regarding supply, the U.S. Energy Information Administration has raised its forecast for U.S. oil production in 2025 by 20,000 barrels per day to an average of 13.61 million barrels per day, marking a record high compared to previous estimates. Conversely, the agency lowered its production forecast for 2026 by approximately 50,000 barrels per day to 13.53 million barrels per day.