Oil Prices Stabilize Amid Ongoing International Negotiations and Supply Fluctuations
Global oil markets stabilized on Wednesday following a prior drop of approximately 1%, as concerns lingered over a widening gap between supply and demand, which has restricted substantial gains. Investors are closely monitoring diplomatic developments, particularly peace talks between Russia and Ukraine.
Brent crude futures saw a slight increase of 0.1%, settling at $62.00 per barrel. Similarly, U.S. West Texas Intermediate crude rose by the same margin, reaching $58.32 per barrel.
In its market analysis, ING Bank warned in a research note that Russian supply continues to pose a risk to market balance, despite a general trend towards surplus forecasts. The bank noted that "Russian seaborne oil exports remain at healthy levels," but added via Reuters that "these barrels are increasingly struggling to find buyers," which could lead to a decline in Russian production if demand remains weak.
On the political front, Ukrainian President Volodymyr Zelensky announced that his country and its European partners will soon submit "revised documents" to the United States regarding the peace plan to end the war with Russia, following intensive diplomatic efforts. Analysts anticipate that a potential peace agreement could lead to a relaxation of international sanctions on Russian companies, potentially allowing for an increase in currently restricted oil supplies.
Regarding supply from another region, the U.S. Energy Information Administration has raised its oil production forecast for the United States in 2025 by 20,000 barrels per day, reaching an average of 13.61 million barrels per day, which represents a record level above previous estimates. Conversely, the administration has lowered its production forecast for 2026 by about 50,000 barrels per day, to 13.53 million barrels per day.
