Oil prices rise as Trump-Putin summit plans fall through

Investing.com-- Oil prices rose slightly in Asian trade, recovering further from a recent five-month low as plans for a U.S.-Russia summit, over the Ukraine war, appeared to have fallen through, pointing to little abatement in the conflict.

Oil was also encouraged by industry data showing a draw in U.S. inventories, which helped quell some concerns over high supplies and sluggish demand. Said concerns were a major drag on oil prices in recent weeks. 

Brent oil futures for December rose 0.3% to $61.53 a barrel, while West Texas Intermediate crude futures rose 0.4% to $57.47 a barrel by 20:51 ET (00:51 GMT). 

Both contracts slid to a five-month low this week, as renewed trade tensions between the U.S. and China also weighed. But positive economic growth data from China and some conciliatory comments from U.S. officials provided oil with support. 

Trump-Putin summit on hold, Ukraine ceasefire appears distant 

A planned summit between U.S. President Donald Trump and Russian counterpart Vladimir Putin was put on indefinite hold on Tuesday, as Moscow rejected calls for an immediate ceasefire in Ukraine. 

Trump had said last week that he would meet Putin in Hungary in the coming weeks. But the U.S. President told reporters on Tuesday that meeting Putin would be a waste of time. 

Russia has kept up its demands that Ukraine cede some of its territory as part of a ceasefire. But Kyiv has largely rejected said demands, and has also rejected suggestions from U.S. officials that it surrender territory for a ceasefire. 

A prolonged Russia-Ukraine conflict points to more potential disruptions in oil supplies, especially as Kyiv began heavily targeting Moscow’s energy infrastructure this year. 

Trump’s meeting with Ukrainian President Volodymyr Zelensky, which took place behind closed doors over the weekend, was also reportedly contentious. But Zelensky had presented the meeting as a success, stating that Trump had agreed to back a ceasefire at the present lines. 

US inventories fall by nearly 3 million barrels- API 

Data from the American Petroleum Institute showed U.S. oil inventories mark a draw of 2.98 million barrels (mb) in the week to October 18. This was after a 3.5 mb build in the prior week. 

The API print usually heralds a similar reading from government inventory data, which is due later on Wednesday.

Any signs of shrinking U.S. inventories could  help ease market concerns