Oil Prices Climb as Ukraine Peace Hopes Fade

Highlights:

• Brent crude rose 1.2% to US$66.25 a barrel, and U.S. West Texas Intermediate (WTI) gained 1.3% to US$62.55, marking their highest closes in a week.
• Oil prices climbed as traders anticipated prolonged sanctions on Russia amid stalled Ukraine peace efforts and rising U.S. oil consumption.
• Despite sanctions, Russia neared its OPEC+ production quota, keeping global supply dynamics in focus.

Prices Reach One-Week Peak

Oil advanced about 1 percent on Wednesday, with Brent crude settling at US$66.25 a barrel (up 80 cents), and U.S. West Texas Intermediate (WTI) rising 82 cents to US$62.55.At the time of writing, Brent recorded its strongest close since September 30, while WTI reached its highest level since September 29.

Geopolitics and Demand Fuel Gains

Traders reacted to signals that a Russia–Ukraine peace deal is unlikely soon—meaning sanctions on Moscow could remain in place. That scenario would constrain Russian oil supply, supporting prices. Meanwhile, a weekly U.S. report revealed rising domestic oil consumption, further tightening expectations for global supply.

Russian Output & OPEC+ Developments

Despite sanctions, Russia continues to revive its oil production and is reportedly close to meeting its OPEC+ output quota. The resilience of Russian supply has been a key factor in market risk assessments. OPEC+ remains a focal point, as collective member actions can sway broader supply balances.

Risks, Outlook & Market Sensitivities

Although the upward momentum is clear, several risk factors loom:

• A breakthrough peace agreement could open up more Russian oil to global markets.
• A sharper-than-expected build in U.S. crude inventories might suppress future gains.
• Changes in OPEC+ production policy or unexpected economic data (especially from China and the U.S.) could quickly reverse sentiment.

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