Oil prices fell for a second straight day on Wednesday as investors awaited news on whether peace talks between Russia and Ukraine would lead to an increase in supply, amid broader concerns about a supply glut as inventories rise.
Brent crude futures fell 13 cents, or 0.21 percent, to $62.32 a barrel by 0221 GMT, after dropping 1.1 percent in the previous session.
U.S. West Texas Intermediate crude lost 12 cents, or 0.20 percent, to $58.52 a barrel, after falling 1.2 percent on Tuesday.
The Russian government said on Wednesday that Russia and the United States had failed to reach a compromise on a possible peace agreement to end the war in Ukraine, following a five-hour meeting at the Kremlin between President Vladimir Putin and envoys of U.S. President Donald Trump.
The oil markets are awaiting the outcome of the talks to see if the agreement will lead to the lifting of sanctions imposed on Russian companies, including the Russian oil companies Rosneft and Lukoil.
Tony Sycamore, a market analyst at IG, said in a note that despite concerns that the talks might end without a decisive outcome, worries about oversupply and weak demand are still weighing on crude oil prices, which must remain above the support level in the middle of the $50 range to avoid further declines.
The war in Ukraine has escalated since the Russian invasion in 2002, and Ukraine now regularly targets Russia's oil infrastructure with drone attacks.
Recent attacks on export sites off Russia’s Black Sea coast have highlighted the geopolitical risks of war.
Sources in the market, citing figures from the American Petroleum Institute on Tuesday, said that U.S. crude oil and gasoline inventories rose last week.
Sources who asked not to be identified said crude oil inventories rose by 2.48 million barrels in the week ending November 28.
The sources added that gasoline inventories rose by 3.14 million barrels, while distillate inventories increased by 2.88 million barrels.
