Oil Prices Rebound Following Recent Decline Amid Ukraine-Russia Negotiations
Oil prices saw a rebound during trading on Wednesday, recovering from their lowest levels in nearly a month. This fluctuation is tied to ongoing developments in the negotiations between Ukraine and Russia.
Brent crude rose by 0.3% to $62.72 per barrel, while West Texas Intermediate (WTI) increased by 0.4% to $58.18 per barrel. Both benchmarks had closed the previous session down by approximately 89 cents.
The prior decline followed a report from Ukrainian President Volodymyr Zelensky to European leaders regarding his willingness to "advance a U.S.-sponsored framework to end the war."
In this context, Tony Sycamore, a market analyst at IG Group, noted: "The conclusion of the agreement could expedite the lifting of Western sanctions on Russian energy exports, potentially pushing WTI crude down to around $55 per barrel." Sycamore added that "markets are awaiting further clarity," indicating that "risks lean towards further declines unless talks stall."
Meanwhile, political pressure continues as U.S. President Donald Trump confirmed that he instructed his representatives "to meet separately with Russian President Vladimir Putin and Ukrainian officials." A Ukrainian official also indicated that President Zelensky "may travel to the United States in the coming days to finalize the agreement details."
In related developments, increasing Western sanctions against Russia have led to a decline in Russian crude imports by India, reaching their lowest level in three years in December.
Conversely, prices received some support from expectations that the U.S. Federal Reserve will "approve a new interest rate cut in December," which could positively impact economic growth and boost oil demand.
