Oil prices settled higher on Wednesday after the US and Russia failed to reach a deal to end the war in Ukraine that could have eased sanctions on Russia’s oil sector.
Brent crude gained 22 cents or 0.4 per cent to finish at $62.67 per barrel and the US West Texas Intermediate (WTI) crude rose by 31 cents or 0.5 per cent to $58.95 per barrel.
Russia and the US failed to reach a compromise after a five-hour meeting between Russian President Vladimir Putin and a US delegation led by special envoy Steve Witkoff, according to the Russian government.
On a day of intense diplomatic efforts to end Europe’s largest and deadliest conflict since World War II, Ukrainian President Volodymyr Zelenskyy said there is a better chance “now than ever” to reach a deal. However, just before the talks, President Putin accused European governments of trying to block the peace process and warned if Europe wants to start a war with Russia, it was ready to fight.
The outcome of the talks could lead to the removal of sanctions on Russian companies, including major oil companies Rosneft and Lukoil, a deal that would free up restricted oil supply.
Meanwhile, US crude, gasoline and distillate stocks rose last week, the Energy Information Administration (EIA) said on Wednesday, adding to fears of an oversupply.
Crude oil inventories in the US increased by 600,000 barrels during the week ending November 28, after adding 2.8 million barrels in the week prior. The increase brings commercial stockpiles to 427.5 million barrels according to government data, which is 3 per cent below the five-year average for this time of year.
For total motor gasoline, the EIA reported that inventories had increased by 4.5 million barrels, on top of the 2.5 million barrel gain in the week prior. The most recent figures showed average daily gasoline production increasing to 9.8 million barrels. For middle distillates, inventories increased by 2.1 million barrels, with production increasing by 53,000 barrels daily to an average of 5.1 million barrels daily. Distillate inventories are now 7% below the five-year average for this time of year.
Traders also leaned into the 2026 messaging by the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) and a softer Dollar.