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Crude prices settled slightly higher on Wednesday as the lack of a breakthrough in US–Russia negotiations sustained the risk premium linked to the Ukraine war, partially countering fresh signs of oversupply in the United States.

Brent for February delivery closed at $62.67 a barrel, up 22 cents or 0.4%.

WTI for January settled 31 cents higher at $58.95, a 0.5% gain. Both benchmarks had declined by more than 1% in the previous session.

Geopolitical sentiment dominated early trading after a five-hour meeting between Russian President Vladimir Putin and a US delegation failed to deliver progress on ending the conflict. The Kremlin described the talks as “constructive,” yet no agreement emerged that would pave the way for lifting sanctions on major Russian producers, including Rosneft and Lukoil.

Recent Ukrainian strikes on Black Sea oil export sites and attacks on sanctioned tankers added to the risk backdrop, with Moscow warning it may act against vessels linked to countries supporting Kyiv.

Fundamentals skewed bearish after the Energy Information Administration reported broader-than-expected builds across crude and refined products. US crude inventories rose by 574,000 barrels in the week ending 28 November, defying expectations for a draw of 821,000 barrels. Gasoline stocks surged by 4.52 million barrels, while distillate inventories climbed by 2.1 million barrels, both outpacing analyst forecasts. The data release, delayed due to technical issues, reinforced concerns over ample supply.

Market nerves were also shaped by commentary from US officials on Venezuela, with renewed rhetoric against the country’s oil sector contributing to wider geopolitical unease. Despite these tensions, traders noted that the persistent oversupply narrative continues to cap upside momentum, keeping WTI tightly range-bound around the $59 mark this week.

Written by: Aiman Haikal