Oil Slips as Markets Weigh U.S.–Russia Peace Talks and Ongoing Supply Risks

Oil prices edged lower in Asian trading on Wednesday, extending losses from the previous session as traders assessed the mixed implications of high-level talks between the U.S. and Russia over ending the war in Ukraine.

By 22:05 ET (03:05 GMT):

• Brent February futures slipped 0.3% to $62.24 per barrel
• WTI crude futures fell 0.3% to $58.44 per barrel

Both benchmarks had already declined by more than 1% on Tuesday.

Markets Parse U.S.–Russia Talks on Potential Peace Deal

A five-hour meeting in Moscow between Russian President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner concluded after midnight, but the Kremlin confirmed that no breakthrough was achieved.

Kremlin adviser Yuri Ushakov called the dialogue “constructive,” yet emphasized that major sticking points remain — particularly territorial issues involving the Donbas region. The lack of tangible progress kept markets cautious.

Meanwhile, Ukrainian strikes on Russian energy infrastructure continued, sustaining the risk of interruptions to Russian crude and product exports. These attacks maintain a geopolitical risk premium in oil prices, even as diplomatic language between the U.S. and Russia shows tentative signs of easing.

Adding to tensions, ING analysts noted that Moscow has warned it may begin striking ships belonging to countries supporting Ukraine, following recent Ukrainian attacks on Russian vessels — a move that could further destabilize regional shipping routes.

API Data Shows Larger-Than-Expected U.S. Crude Draw

U.S. supply data from the American Petroleum Institute added another layer to the market narrative.
API reported a 2.48-million-barrel draw in crude inventories for the week ending November 28 — a sharper decline than the prior week.

Such large draws are typically bullish for crude markets, suggesting rising demand or tightening supply. However, traders remained cautious ahead of the official EIA report, due later Wednesday, which will include updates on:

• Crude stocks
• Gasoline inventories
• Distillate supplies

The EIA data is considered more authoritative and could reinforce — or reverse — the bullish read from API.