Oil Prices Rise After One-Month Low Amid Signs of Ukraine-Russia Peace Progress

Oil prices edged higher on Wednesday, rebounding slightly after falling to a one-month low in the previous session, as markets reacted to signs that Ukraine and Russia may be approaching a U.S.-backed peace agreement. Traders are closely watching developments that could eventually ease Western sanctions on Russian crude, reshaping global oil flows.

Brent crude futures climbed 19 cents, or 0.3%, to $62.67 per barrel, while U.S. West Texas Intermediate (WTI) increased 14 cents, or 0.24%, to $58.09. Both benchmarks had tumbled by 89 cents on Tuesday, after Ukrainian President Volodymyr Zelenskiy told European leaders he was ready to advance the peace framework, leaving only a few unresolved issues.

Market sentiment remains cautious, with investors awaiting more concrete diplomatic signals. U.S. President Donald Trump confirmed that he has instructed representatives to hold separate talks with Russian President Vladimir Putin and Ukrainian officials. Meanwhile, a Ukrainian official hinted that Zelenskiy may soon travel to the U.S. to finalize the agreement.

The recent geopolitical developments come amid intensified sanctions on Moscow by the U.S., Britain, and the European Union, even as Russia’s oil exports to India — one of its major buyers — are expected to drop to a three-year low in December. Analysts say this combination of factors is keeping oil markets on edge, with supply and demand expectations shifting rapidly.

Despite the cautious optimism, traders remain vigilant. Any breakthrough in the Ukraine-Russia talks could lift crude prices further, while lingering uncertainties over sanctions and geopolitical tensions continue to inject volatility into the global oil market.

source: Business day