Crude Oil Fundamental Analysis
Bloomberg—WTI crude oil futures hovered near $58 per barrel on Wednesday, staying close to a five-week low. Prices slipped as hopes grew for a possible peace deal in Ukraine, which could lead to easing limits on Russian oil.
US President Donald Trump said the talks were almost finished, noting that only a few points still needed work. At the same time, a senior Ukrainian official in Geneva said the discussions were a positive step toward an agreement.
If a deal is reached, sanctions on Russia could ease, allowing more Russian crude to enter the market. This may increase supply at a time when global output is already higher than demand, raising fresh worries about an oversupplied market.
In addition, US crude inventories dropped by 1.9 million barrels last week, ending a run of three straight weekly builds. More detailed government data will be released later today.
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