Oil prices held steady at two-month lows on Wednesday, with market sentiment weighed down by the potential for a peace deal between Russia and Ukraine, while a drop in U.S. crude stockpiles provided some support.
Brent crude was down 19 cents at $72.83 a barrel, and U.S. West Texas Intermediate crude futures fell by 13 cents to $68.80 by 1256 GMT.
Prospects for a peace agreement between Russia and Ukraine are improving, which could lead to a reduction in sanctions on Russia, easing supply uncertainty in the market. Additionally, the market is monitoring a potential minerals deal between the U.S. and Ukraine, which could further influence oil prices.
In contrast, U.S. crude stockpiles fell by 640,000 barrels in the week ending February 21, according to data from the American Petroleum Institute. This decline marks the first drop in U.S. crude inventories since mid-January, if confirmed by official data later on Wednesday. Analysts had expected a 2.6 million barrel increase in stockpiles.
Oil prices have faced downward pressure from concerns that U.S. President Donald Trump’s policies, including initiatives to boost oil exports from Iraq and tariff policies, could negatively impact economic growth and fuel a potential trade war. Despite these concerns, recent U.S. sanctions on Iran have added some uncertainty to the supply outlook.
