Oil Prices Stabilize Amid International Negotiations and Supply Fluctuations
Global oil markets demonstrated stability in trading on Wednesday, recovering from a previous drop of approximately 1%. This comes amid concerns regarding the expanding gap between supply and demand, which has hindered substantial gains. Investor focus remains on diplomatic developments, particularly the ongoing peace talks between Russia and Ukraine.
Brent crude futures, the global benchmark, saw a slight increase of 0.1%, stabilizing at $62.00 per barrel. Similarly, U.S. West Texas Intermediate crude rose by the same margin, reaching $58.32 per barrel.
In market analysis, ING Bank cautioned in a research report that Russian supplies continue to pose a risk to market balance, despite general expectations of a surplus. The bank noted that "Russian oil exports by sea remain at adequate levels," but according to "Reuters," these barrels are increasingly struggling to find buyers, which could lead to a reduction in Russian production if weak demand persists.
On the political front, Ukrainian President Volodymyr Zelensky announced that Ukraine and its European partners will soon present "revised documents" to the United States related to the peace plan aimed at ending the war with Russia, following intense diplomatic efforts. Analysts predict that any potential peace agreement could lead to a relaxation of international sanctions on Russian companies, potentially allowing for an increase in currently restricted oil supplies.
In another region, the U.S. Energy Information Administration has raised its projections for U.S. oil production for 2025 by 20,000 barrels per day, reaching an average of 13.61 million barrels per day, marking a record high compared to previous estimates. Conversely, the agency has lowered its production projections for 2026 by approximately 50,000 barrels per day, bringing it to 13.53 million barrels per day.
