Oil prices climbed after sliding to a one-month low in the previous session.
Brent crude futures rose 27 cents, or 0.43%, to $62.75 a barrel at 0512 AM WAT on Wednesday, while U.S. West Texas Intermediate crude futures gained 24 cents, or 0.41%, to $58.19 a barrel.
Both Brent crude and WTI settled down 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders that he was ready to advance a U.S.-backed framework for ending the war with Russia, with only a few points of disagreement remaining.
“If finalised, the deal could rapidly dismantle Western sanctions on Russian energy exports,” potentially driving WTI prices to around $55, IG market analyst Tony Sycamore said in a client note quoted by Reuters.
“For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter.”
U.S. President Donald Trump said he directed his representatives to meet separately with Russian President Vladimir Putin and Ukrainian officials, while a Ukrainian official said Zelenskiy could visit the U.S. in the next few days to finalise a deal.
Britain, Europe, and the U.S. have tightened sanctions on Russia recently in a stepped-up pressure campaign, and Russian oil purchases by India – a key buyer – are set to hit their lowest level in three years in December.
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U.S. crude stocks fell last week while fuel inventories rose. The country’s crude stocks were previously estimated in a Reuters poll to have risen by 1.86 million barrels in the week that ended on November 21.
Official stockpile data from the Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT).
Crude prices have received some support from expectations for a potential U.S. Federal Reserve interest rate cut in December following economic data releases, showing lower retail spending and softer inflation.
Lower rates would stimulate economic growth and bolster demand for oil.
