Stability of Oil Prices Amid Decline in US Stocks

SadaNews - Oil prices stabilized after a report indicated a decrease in US inventories, while investors are evaluating the prospects of ceasefire talks between Ukraine and Russia.

Brent crude was trading near $66 a barrel after dropping by 1.2% on Tuesday, while West Texas Intermediate remained below $63.

The American Petroleum Institute, funded by the industry, reported that crude inventories fell by 2.4 million barrels last week, according to people familiar with the numbers. Official data is set to be released later on Wednesday.

Monitoring Developments in Ukraine War Ceasefire Talks

The market is closely monitoring progress towards a ceasefire in the Ukrainian war following a series of high-level talks mediated by President Donald Trump. Any final peace agreement could ease restrictions on Russia's oil exports, although Moscow has largely maintained its crude flows.

Much of this crude has been shipped to India since the war broke out, which has recently drawn criticism from Trump. US Treasury Secretary Scott Pessen stated on Tuesday that some of "the wealthiest families in India" benefitted from purchases of Russian oil, reaffirming plans to raise tariffs on the South Asian nation.

However, the long-term outlook for the oil market appears negative, with an anticipated surplus in supply later in 2025, with the return of "OPEC+" barrels and Trump's trade policies raising concerns about demand. Futures have dropped more than 10% since the beginning of the year.