Oil prices rose on Wednesday as supply concerns are resurfacing while peace talks ending Russia’s invasion of Ukraine are likely to take longer, leaving in place sanctions on Russian crude and raising the chance of further restrictions on its buyers.
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.
(Reporting by Colleen Howe; Editing by Christian Schmollinger)