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Oil prices rose modestly on Wednesday after sliding to a one-month low in the previous session, though expectations of a growing supply glut and progress toward a Russia-Ukraine peace deal kept gains limited.
Brent crude futures gained 28 cents (0.45%) to $62.76 a barrel by 07:08 GMT, while U.S. West Texas Intermediate (WTI) futures climbed 26 cents (0.45%) to $58.27.
Analysts noted that Wednesday’s uptick appeared more technical than fundamental.
“The mild gains feel more like a technical breather than a trend,” said Priyanka Sachdeva, senior market analyst at Phillip Nova. “Today’s upticks and any that follow are being driven by softer inventory signals and pockets of short-covering — but these spikes will be short-lived and fragile.”
She added that the market remains “fundamentally skewed to the downside,” with traders increasingly pricing in an oversupplied 2026 and seeing no strong demand catalyst to offset the trend.
Both Brent and WTI fell 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy said he was ready to advance a U.S.-backed framework for resolving the war with Russia, noting only a few remaining points of disagreement.
IG analyst Tony Sycamore said a finalized peace deal “could rapidly dismantle Western sanctions on Russian energy exports,” potentially pushing WTI toward $55.
“For now, the market waits for more clarity — but the risk remains tilted to the downside unless talks falter,” he added.
U.S. President Donald Trump said he directed representatives to meet separately with Russian President Vladimir Putin and Ukrainian officials, while a Ukrainian official said Zelenskiy may visit the U.S. in the coming days to finalize a deal.
Adding to supply pressure, Western nations have recently tightened sanctions on Russia, while India — a key buyer of discounted Russian crude — is set to reduce purchases to their lowest level in three years in December.
Early industry data added mixed signals. U.S. crude stocks fell last week, while fuel inventories increased, according to the American Petroleum Institute. A Reuters poll had previously expected crude stocks to rise by 1.86 million barrels for the week ending Nov. 21.
Official figures from the Energy Information Administration (EIA) are due Wednesday at 10:30 a.m. ET (15:30 GMT).
Oil has found some support from expectations that the Federal Reserve may cut interest rates in December, particularly after recent data showed weaker U.S. retail spending and softer inflation. Lower interest rates would support economic growth and potentially boost oil demand.
