Oil prices rise after supply concerns resurface as Ukraine peace talks stall
Brent crude futures were at $65.93 a barrel by 0149 GMT, up 14 cents, or 0.21%. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, rose 37 cents to $62.72 a barrel, up 0.59%.
The more-active October contract was at $61.92 a barrel, up 15 cents.
Prices settled down more than 1% on Tuesday on optimism a deal to end the war seemed closer, which would mean the easing sanctions on Russia and an increase in global supply.
However, despite comments from U.S. President Donald Trump on Tuesday the U.S. might provide air support as part of a deal to end Russia's war in the country, he also conceded Russian President Vladimir Putin might not want to make a deal after all.
Trump on Monday said he was arranging a meeting between Russian President Vladimir Putin and Zelenskiy, to be followed by a trilateral summit among the three presidents.
Trump said on Tuesday he discussed holding possible talks between Zelenskiy and Putin in Hungary with the country's Prime Minister Viktor Orban.
Russia has not confirmed it will take part in talks with Zelenskiy.
"The likelihood of a quick resolution to the conflict with Russia now seems unlikely," said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday.
In the U.S., BP said on Tuesday operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were affected due to flooding caused by a severe thunderstorm overnight, potentially weighing on the facility's crude demand. The site is a key fuel producer for the Midwest market.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Business
an hour ago
- Arabian Business
India and China agree to restore flights and trade flow after minsiter Wang's visit
India and China – the two biggest countries in the world that comprise nearly 35 per cent of the planet's population – have agreed to resume direct flights and step up trade and investment flows as they look to rebuild the ties damaged by a border clash in 2020. The border talks covered issues related to pulling back troops both countries have amassed on their border and delimitation of borders and boundary affairs. There was no major breakthrough on those issues, but Beijing said both countries agreed to meet again in China in 2026. However, the two countries have agreed to resume direct flights – without setting up an exact date at the moment – and boost trade and investment, along with smooth facilitation of visas. Direct flights have been suspended since the COVID-19 pandemic in 2020. At the meeting of the Special Representatives between visiting Chinese foreign minister Wang Yi and National Security Adviser (NSA) Ajit Doval, the two sides agreed to create an expert group under the Working Mechanism for Consultation and Coordination (WMCC) on border affairs to explore 'early harvest in boundary delimitation', and to set up another working group under the WMCC to 'advance effective border management' and maintain peace and tranquillity. The statement was issued after minister Wang's two-day visit to New Delhi. Indian Prime Minister Narendra Modi, posted on X about making steady progress after meeting Wang: 'Glad to meet Foreign Minister Wang Yi. Since my meeting with President Xi in Kazan last year, India-China relations have made steady progress guided by respect for each other's interests and sensitivities. I look forward to our next meeting in Tianjin on the sidelines of the SCO Summit. Stable, predictable, constructive ties between India and China will contribute significantly to regional as well as global peace and prosperity.' Glad to meet Foreign Minister Wang Yi. Since my meeting with President Xi in Kazan last year, India-China relations have made steady progress guided by respect for each other's interests and sensitivities. I look forward to our next meeting in Tianjin on the sidelines of the SCO… — Narendra Modi (@narendramodi) August 19, 2025 Modi's scheduled visit to China at the end of August to take part in the summit of the Shanghai Cooperation Organisation will be his first to the country in more than seven years. A readout from the Chinese foreign ministry said Wang told Doval that 'the stable and healthy development of China-India relations is in the fundamental interests of the two countries' people. The two sides should enhance mutual trust through dialogues and expand cooperation'.
Al Etihad
3 hours ago
- Al Etihad
Oil prices likely to stay steady in H2 2025, say analysts
20 Aug 2025 11:58 A. SREENIVASA REDDY (ABU DHABI)Oil prices are unlikely to experience a significant rise in the remainder of 2025, with analysts pointing to steady Russian supplies, the unwinding of OPEC+ cuts, and comfortable European stock levels as key stabilising forces. Despite persistent geopolitical uncertainty, the consensus view from the market observers is that bearish sentiment continues to weigh on oil NBD Research notes that while headlines around diplomacy and sanctions have created short-term volatility, the fundamental impact on supply has been muted.'Geopolitical developments have only managed to have brief effects on oil markets this year,' the bank's research paper said, recalling June's price spike during the Iran–Israel conflict which quickly subsided when no production was recently, Brent futures rose above $73 a barrel in late July but eased back in August as the 'prospect of more US restrictions on Russian oil exports receded'.According to the bank's Chief Economist, Edward Bell, Russian crude continues to find buyers, with a marked shift in destination rather than volume. 'Overall seaborne shipments of Russian oil have been fairly steady since the war began but there has been a material shift in their destination,' the report stated. By mid-2025, Asia was absorbing 57% of Russian exports, compared with less than 30% before the conflict, while Europe's share had fallen to about 21%.European markets, meanwhile, are hardly in need of more barrels. Emirates NBD highlights rising inventories in the Amsterdam–Rotterdam–Antwerp (ARA) hub, alongside forecasts from the IEA and OPEC showing European demand broadly flat through 2025–26. With storage rising and consumption stagnant, the case for higher prices looks the same time, OPEC+ is bringing back barrels faster than expected. The eight members who undertook additional voluntary cuts earlier this year will 'increase output by almost 550,000 barrels per day in September,' reaching their 2026 targets ahead of a result, Emirates NBD projects Brent prices to hover close to $65 a barrel in the second half, only slightly below recent averages. 'We expect prices will hold close to our forecast levels of $65/b in H2 for the balance of 2025 as inventory builds gather pace amid moderate demand growth and supply increases from OPEC+ and elsewhere weigh on balances,' Bell Sahdev, Senior Vice President and Chief Oil Analyst at Rystad Energy, echoed the view that Russian supply will remain a fixture on global markets. 'The probability of the US placing stronger sanctions on Russia is waning, with the market expecting Russian oil trade to make a comeback as a result of the peace talks,' he observed. Despite this, Sahdev cautioned against expecting prices to collapse, noting China's aggressive stockpiling. By Rystad's estimates, if China keeps buying crude at levels 10% above refinery needs, it could add 250–300 million barrels into storage this year, absorbing excess underlined that bearish pressures remain, particularly from OPEC+ unwinding 2.2 million barrels per day of voluntary cuts by September. While this suggests oversupply into late 2025, he added that 'all the increase is not going to be made to the export market,' as Middle Eastern refiners are set to raise runs to around 9.6–9.8 mbpd, partly offsetting the global factors are also contributing to a subdued outlook. US commercial inventories remain below last year's levels despite recent builds, while Canadian production will soon undergo maintenance. Brazil's Petrobras, meanwhile, faces a new pricing framework that could constrain operations. 'While it is extremely difficult to predict what happens next in the complex peace process involving Ukraine and Russia, the signals are there that oil prices are not tanking to very low levels and Russian energy will flow easily,' Sahdev concluded.
The National
3 hours ago
- The National
President Vladimir Putin commends Saudi Arabia for efforts towards Russia-Ukraine peace talks
Russian President Vladimir Putin has briefed Saudi Crown Prince Mohammed bin Salman on his meeting with US President Donald Trump, aimed at ending the war between Russia and Ukraine. Mr Trump and Mr Putin met in Alaska on Friday, marking the first meeting between the presidents of the US and Russia since Moscow invaded Ukraine more than three years ago. During Tuesday's phone call, Mr Putin thanked the kingdom for its role in the process, after it hosted negotiators from the US and Russia in March, the Saudi Press Agency reported. He reiterated his appreciation for Prince Mohammed's efforts towards ending the Ukraine war. 'The Crown Prince affirmed the kingdom's continued support for diplomatic dialogue as a means of resolving international disputes,' the report added. While no deal was reached in Alaska, Mr Trump and Mr Putin agreed to continue with the process towards peace. Ukrainian President Volodymyr Zelenskyy then met Mr Trump at the White House on Monday, along with European leaders. The US President has said a meeting between the Russian and Ukrainian leaders is required first to set the peace process in motion, although concerns remain that Mr Putin may not agree to bilateral talks. US efforts towards a peace deal between Russia and Ukraine started to take shape in Saudi Arabia in March, during the first high-level meeting between American and Russian officials in years. The talks, which focused among other issues on trying to reach a Black Sea maritime ceasefire deal, were described by Washington as a step in Mr Trump's efforts to end the war. Before the talks in Riyadh, Mr Zelenskyy had also met Prince Mohammed in Jeddah to discuss peace efforts. During the meeting, the Crown Prince voiced the kingdom's support for international efforts to resolve the crisis in Ukraine, SPA said at the time. Mr Zelenskyy said he was grateful for Prince Mohammed's perspective and highlighted the important role played by Saudi Arabia in recent talks. Russia has occupied about 20 per cent of Ukrainian territory, a vast area that is home to more than three million people. How much land Ukraine will agree to give up to its enemy will be a key component in reaching a peace deal. It has been a struggle to reach even a limited, 30-day ceasefire – which Moscow and Kyiv agreed to in principle earlier this year – as both sides continued to attack each other with drones and missiles. The agreement fell short of the broader ceasefire that Washington and Kyiv had sought, which would have paused hostilities entirely for 30 days.
