Oil prices are up, rebounding from a previous decline. This increase is attributed to heightened geopolitical tensions stemming from stalled Ukraine-Russia peace talks and planned naval drills by Iran and Russia. Market participants are also anticipating the release of US weekly oil data, which is expected to show a rise in crude stockpiles but a decrease in distillate and gasoline inventories.
- WTI crude oil futures rose 2% to $63.7 per barrel.
- Ukraine Russia peace talks in Geneva ended abruptly after two hours.
- Ukrainian President Volodymyr Zelenskiy accused Russia of delaying progress in the talks.
- Russian negotiator Vladimir Medinsky described the talks as business-like.
- Iran and Russia have planned naval drills in the Sea of Oman and northern Indian Ocean.
- Market participants are awaiting US weekly oil data.
- Analysts expect US crude stockpiles to have risen last week.
- Analysts expect distillate and gasoline inventories likely fell last week.
The confluence of geopolitical factors and anticipated shifts in US oil inventories is creating upward pressure on oil prices. The breakdown in peace negotiations adds uncertainty to the region, potentially disrupting supply chains. Simultaneously, expected draws in gasoline and distillate inventories alongside a build in crude could suggest shifting demand dynamics within the market.