Oil prices recorded a slight increase on Wednesday after falling to one-month lows the previous day. Traders across global energy markets are now watching diplomatic moves closely as signals emerge that Ukraine may be edging closer to a United States-backed peace deal with Russia. Many believe that such an agreement could eventually lead to the easing of Western sanctions on Russian crude, a development that may reshape world oil supply in the coming months.
Brent crude futures went up by 19 cents, representing about 0.3 per cent, to trade at $62.67 per barrel as at the time of filing this report. West Texas Intermediate (WTI), the U.S. benchmark, also rose by 14 cents, or 0.24 per cent, to $58.09 per barrel. Before Wednesday’s increase, both benchmarks had dropped by 89 cents on Tuesday. The decline followed comments by Ukrainian President Volodymyr Zelenskiy, who told European leaders that he was ready to move forward with the proposed peace framework and that only a few key issues remained unresolved.
Energy analysts said the slight rebound in crude prices shows the market remains cautious. Many traders prefer to wait for clearer signals before taking strong positions, especially given how sensitive oil prices have been to geopolitical news in recent months. Every statement from Kyiv, Moscow, Washington or major European capitals has sent traders either buying or selling rapidly, showing how fragile confidence has become in the global oil market.
The diplomatic track is also gaining more attention in Washington. U.S. President Donald Trump said he has directed American representatives to hold separate meetings with Russian President Vladimir Putin and Ukrainian officials. According to him, the United States intends to push for an agreement that will end the long-running Russia-Ukraine conflict. A senior Ukrainian official also revealed that President Zelenskiy may travel to the U.S. in the coming days to finalise details of the peace deal.
Should the negotiations succeed, energy market watchers believe the West may consider gradually lifting or relaxing sanctions placed on Russian oil, although such a step would depend on the final terms of the peace agreement. Sanctions from the U.S., the European Union and the UK have reduced Russia’s ability to sell crude freely on the global market. Despite these restrictions, Russia has maintained strong export ties with some countries, including India, although current data indicates that India’s imports of Russian crude may fall to a three-year low in December.
In recent weeks, Washington, London and Brussels have tightened sanctions to increase pressure on Moscow as fighting continued in key parts of Ukraine. Analysts say this renewed pressure has also influenced oil prices, as traders fear any escalation could disrupt supply or trigger new countermeasures from Russia.
Market sentiment remains mixed. Some traders believe that a peace deal could allow more Russian crude into the market, potentially keeping prices in check. Others argue that improved global stability could boost economic confidence, increase oil demand and raise prices in the long term.
For now, most traders are keeping an eye on the diplomatic discussions and waiting for more concrete developments. The next steps taken by leaders in Washington, Moscow and Kyiv will determine the direction of oil prices in the short term. Until then, volatility is expected to continue as markets react to every new announcement.
