Oil up as investors await next steps in Ukraine peace talks

Brent crude futures added 50 cents to $66.29 a barrel, while U.S. West Texas Intermediate crude futures for September delivery were at $62.80 a barrel, up 45 cents

Oil prices rose on Wednesday as investors awaited the next steps in talks to end the war in Ukraine, with U.S. sanctions on Russian crude remaining in place for now and the potential for further restrictions on buyers of its exports still looming.

Brent crude futures added 50 cents to $66.29 a barrel by 0630 GMT. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, were at $62.80 a barrel, up 45 cents. The more active October contract was at $62.30 a barrel, up 53 cents.

Prices settled down more than 1% on Tuesday on hopes that a deal to end the war seemed closer, which would likely lead to an easing of U.S. sanctions on Russia and an increase in global supply.

However, despite comments from U.S. President Donald Trump on Tuesday that the U.S. might provide air support as part of security guarantees for Ukraine, he also conceded that Russian President Vladimir Putin might not want to make a deal.

Crude markets are in limbo. Continued protracted peace talks will keep the market on its toes, said Emril Jamil, a senior analyst at LSEG.

Trump said on Monday he was arranging a meeting between Putin and Ukrainian President Volodymyr Zelensky to be followed by a trilateral summit among the three presidents.

Russia has not confirmed it will take part in talks with Zelensky.

The likelihood of a quick resolution to the conflict with Russia now seems unlikely, said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday.

Prices also found some support as an industry inventory report indicated steady crude and fuel demand in the US, the world’s biggest oil consumer.