Energy Prices Lift After Sanctions Shift

Oil prices recovered on Wednesday after falling to a one-month low in the previous session, as markets reacted to geopolitical developments and shifting expectations around sanctions and peace negotiations. Brent crude rose to $62.75 per barrel, while U.S. West Texas Intermediate traded at $58.19 per barrel during early morning trading.

The rebound came after both benchmarks fell 89 cents on Tuesday following remarks by Ukrainian President Volodymyr Zelenskiy, who told European leaders he was prepared to move forward with a U.S.-supported peace framework with Russia, with only a few issues left unresolved. Analysts noted that a finalized agreement could pave the way for a rapid rollback of Western sanctions on Russian energy exports, a development that could push WTI prices closer to $55 per barrel.

Market watchers, however, cautioned that traders were still waiting for more concrete signals, and that crude prices could come under further downward pressure unless negotiations stall. U.S. President Donald Trump confirmed he had instructed his representatives to meet Russian and Ukrainian officials separately, while reports suggested Zelenskiy could travel to the United States soon to conclude discussions.

Meanwhile, Western countries have tightened sanctions on Russia in recent weeks as part of increased diplomatic pressure. India’s imports of Russian oil—an important outlet for Moscow—are projected to fall in December to their lowest level in three years.

In the United States, crude inventories were reported to have declined last week, even as fuel stocks increased. Official data from the Energy Information Administration was expected later on Wednesday. Crude prices also drew some support from renewed expectations that the U.S. Federal Reserve could cut interest rates in December, following economic data that pointed to softer retail spending and easing inflation. Lower interest rates are typically seen as positive for fuel demand due to their stimulative effect on economic activity.