Oil prices rebounded on Wednesday as investors awaited fresh developments in peace talks to end the war in Ukraine, while U.S. crude inventories showed a notable decline.
The American Petroleum Institute (API) reported a 2.42 million-barrel drop in U.S. crude stocks, providing price support ahead of official government data expected later in the day.
By 1000 GMT, Brent crude futures rose 44 cents, or 0.7%, to $66.23 per barrel, while U.S. West Texas Intermediate gained 65 cents, or 1%, to trade at $63.
Market analysts observed that prices have swung sharply, falling on Tuesday amid hopes of a peace deal, only to recover the next day on renewed uncertainty.
U.S. President Donald Trump acknowledged that Russian President Vladimir Putin might resist a settlement, even as he proposed a meeting between Putin, Ukraine’s Volodymyr Zelenskiy, and himself.
Trump also suggested possible U.S. air support as part of any peace arrangement, though Russia has yet to confirm participation in such talks.
Analysts warned that a quick resolution to the conflict now appears unlikely, leaving markets highly sensitive to diplomatic developments.
Oil also drew support from supply disruptions, after BP reported flooding at its 440,000-barrel-per-day Whiting refinery in Indiana, a key fuel supplier to the Midwest.