Oil Prices Stabilize Awaiting Developments in International Talks and Supply Fluctuations
Global oil markets stabilized in trading today, Wednesday, after a previous decline of nearly 1%, amid fears of a widening gap between supply and demand that limited significant gains. Investors' attention remains focused on diplomatic developments, particularly peace talks between Russia and Ukraine.
Brent crude futures recorded a slight increase of 0.1%, stabilizing at $62.00 per barrel. West Texas Intermediate crude also rose by the same percentage to reach $58.32 per barrel.
In its market analysis, ING Bank warned in a research note that Russian supplies still pose a risk to balance, despite the general trend towards expectations of a surplus. The bank explained that "Russian oil exports transported by sea are maintaining good levels," noting through Reuters that "those barrels are increasingly struggling to find buyers," which could lead to a decline in Russian production if demand remains weak.
On the political front, Ukrainian President Volodymyr Zelensky announced that his country and its European partners will soon present the United States with "revised documents" related to the peace plan to end the war with Russia, following intense diplomatic moves. Analysts expect any potential peace agreement to lead to a easing of international sanctions on Russian companies, which could allow for an increase in currently restricted oil supplies.
On the supply side from another region, the U.S. Energy Information Administration raised its forecast for U.S. oil production for 2025 by 20,000 barrels per day, reaching an average of 13.61 million barrels per day, which represents a record level higher than previous estimates. Conversely, the agency lowered its production forecast for 2026 by about 50,000 barrels per day to 13.53 million barrels per day.
