(Investing) – Oil prices traded in a steady manner Wednesday, stabilizing after the previous session’s sharp losses, as investors weighed a smaller-than-expected draw in U.S. inventories and growing signs of progress toward a potential Russia-Ukraine peace framework.
At 04:15 ET (09:15 GMT), expiring in January edged up 0.1% to $61.83 per barrel and West Texas Intermediate (WTI) crude futures slipped 0.2% to $57.98 per barrel.
Both contracts slumped nearly 1.5% on Tuesday, reaching their lowest levels in over a month.
Russia-Ukraine peace talks weigh
Oil prices have stabilized Wednesday after the previous session’s losses which stemmed from Ukrainian President Volodymyr Zelenskiy saying that Kyiv was ready to advance a U.S.-supported framework aimed at ending the war with Russia.
Earlier this week, a revised peace proposal was discussed with U.S. and European officials in Geneva, which includes phased security guarantees.
“Positive signals from both the U.S. and Ukraine regarding a Russia-Ukraine peace deal continue to put pressure on energy markets. However, there’s little clarity on where Russia stands on the current plan,” ING analysts said.
“We are likely to get more colour on Russia’s stance in the coming days, with U.S. special envoy Steve Witkoff set to visit Moscow.”
Any credible progress toward a peace deal could eventually ease restrictions on Russian crude and refined products, raising the prospect of increased supply returning to global markets.
That possibility has weighed heavily on crude prices in recent days.
U.S. crude stockpiles decline less than expected – API
Data from the American Petroleum Institute showed U.S. crude stocks fell by 1.9 million barrels in the week ending Nov. 21, undershooting expectations for a 2.4 million-barrel decline. The weaker-than-forecast draw added to concerns about sluggish demand heading into year-end, limiting support for crude futures.
Gasoline and distillate fuel oil stocks increased by 500,000 barrels and 800,000 barrels, respectively, indicating soft consumption heading into the holiday travel season.
“Overall, the numbers are largely neutral, with a smaller-than-expected decline in crude inventories and a less-than-expected increase in gasoline inventories,” ING analysts said in a note.
Investors now await later on Wednesday, as well as more economic data which could cement a December rate cut by the .
Ayushman Ojha contributed to this article
