Oil prices stabilized on Wednesday after a three-day decline, as investors assessed the impact of Western sanctions on Russia’s major crude producers, amid mixed industry estimates on changes in U.S. inventories.
اضافة اعلان
Brent crude traded above $64 per barrel after falling more than 2% over the past three sessions, while West Texas Intermediate (WTI) neared $60 per barrel.
U.S. Ambassador to NATO, Matthew Whitaker, stated that President Donald Trump will proceed with imposing strict new sanctions on Moscow, aiming to pressure Vladimir Putin into negotiations to end the war in Ukraine.
Meanwhile, an industry report indicated a 4-million-barrel drop in total U.S. crude inventories nationwide, along with declines in gasoline and distillate stocks. However, the report also showed an increase in oil stocks at the key Cushing, Oklahoma storage hub. Official data is expected later on Wednesday.
Oil is headed for its third consecutive monthly decline, as prices are pressured by expectations of a global surplus with OPEC+ increasing production.
The OPEC+ alliance is scheduled to meet at the end of the week, where an additional supply increase is expected to be approved. Traders are also monitoring progress in U.S.-China trade talks, with a scheduled meeting between Trump and Chinese President Xi Jinping on Thursday.
Uncertainty Surrounding Sanctions on Russia
Warren Patterson, Head of Commodity Strategy at ING Groep NV in Singapore, said, “Fundamentals in the oil market still lean bearish as OPEC+ continues to add supply while the market surplus deepens. It is clear that sanctions on Russia remain the main uncertainty, and it will take time to gain clarity on their effects.”
Last week, the U.S. Treasury blacklisted Rosneft PJSC and Lukoil PJSC, Russia’s largest oil producers, while traders closely monitored the impact of these sanctions. U.S. officials indicated the plan aims to make Russian trade more costly and risky without driving up prices. In Asia, Indian state-owned refiners are considering whether they can continue purchasing some discounted Russian cargoes through non-sanctioned suppliers.
Investors Await U.S. Interest Rate Decision
Traders are also watching the U.S. Federal Reserve meeting on Wednesday, which could influence investors’ appetite for risk assets, including commodities. Policymakers are widely expected to cut interest rates by 0.25 percentage points.
Regarding petroleum products, the European diesel-Brent crack spread rose to its highest level in over 20 months this week due to sanctions on Russia and disruptions at some refineries, threatening market supply.
In the latest trading, December Brent futures fell 0.2% to $64.28 per barrel at 11:38 a.m. in Singapore, while December WTI futures declined 0.1% to $60.07 per barrel, according to Bloomberg.
