Oil held onto its gains as investors assessed the prospects for a ceasefire in Ukraine and the fallout from tensions between the United States and Venezuela.
Brent crude fell below $63 a barrel after rising 0.4% on Wednesday, while West Texas Intermediate crude was near $59.
US President Donald Trump said the meeting between his envoy and President Vladimir Putin went reasonably well, but acknowledged he did not know what the outcome would be, after rounds of talks related to an agreement to end Russia's war in Ukraine.
In a separate development, Trump reiterated that the United States would soon begin ground strikes against drug cartels in Venezuela. The US military buildup in the region has added a risk premium to oil prices, partially offsetting concerns about a projected record surplus next year.
Mixed pressures on prices
Gao Jian, an analyst at Shandong-based Chisheng Futures, said the situation in Venezuela warrants caution from the market. However, he added that supply fundamentals continue to exert downward pressure on crude prices.
Oil is on track to post an annual loss as OPEC+ brings disrupted production back online and output from non-OPEC+ countries increases. Earlier this year, Chinese purchases helped support the market, but Janet Hong, CEO of Hengli Petrochemical International, expects Chinese demand to remain weak until at least mid-2026.
Saad Rahim, chief economist at Trafigura Group, said during the Financial Times Commodities Asia Summit held in Singapore on Wednesday: “Regardless of the expected demand, supply is very large. The easiest path for prices is likely to be downward.”
U.S. crude oil inventories rose by 574,000 barrels last week, according to government data released Wednesday. Gasoline and distillate stocks also increased.
