EUR/USD likely to find a peak near 1.25: UBS
Investing.com-- Oil prices rose Wednesday after industry data showed a larger-than-expected fall in U.S. crude inventories, while traders weighed prospects of a possible Russia-Ukraine peace initiative.
At 08:45 ET (12:45 GMT), Brent Oil Futures expiring in October rose 1% to $66.45 per barrel, while West Texas Intermediate (WTI) crude futures gained 1.1% to $62.46 per barrel.
Both contracts fell on Tuesday as the possibility of a Russia-Ukraine peace deal sparked supply surplus worries, at a time markets are already grappling with OPEC+ supply hikes.
U.S. crude stockpiles jump more than expected - API
In an industry update, the American Petroleum Institute reported that U.S. crude oil stocks fell by 2.4 million barrels in the week ending August 15.
This decline was stronger than the 1.2 million-barrel fall analysts had forecast, following a 1.5 million-barrel build the prior week.
The deeper-than-expected draw lent support to oil prices.
The official data, from the Energy Information Administration, are due later in the session.
Russia-Ukraine peace talks in focus
U.S. President Donald Trump said on Tuesday that he spoke with Russian President Vladimir Putin after hosting Ukrainian President Volodymyr Zelensky and European leaders at the White House on Monday.
Trump has said he was arranging a meeting between Moscow and Kyiv, followed by a potential trilateral summit involving the United States.
In his public remarks, Trump has pledged that the U.S. would help guarantee Ukraine’s security as part of any peace settlement, although he did not specify the form or scope of such assurances.
Zelensky welcomed the announcement as "a major step forward,” and signaled readiness for direct talks with Russia.
Traders are watching closely for any sign that a peace framework could lead to easing of Western sanctions on Russian crude exports.
"Betting markets aren’t overly convinced that we’ll see a ceasefire before the end of the year. Polymarkets is showing a 38% chance of a ceasefire, well below the peak of 78% seen in March," said analyst at ING, in a note.
Russia remains one of the world’s top oil suppliers, but sanctions have capped some flows into Western markets since the invasion of Ukraine.
"The other big issue relating to Russia-Ukraine is the secondary tariffs the U.S. placed on India for its imports of Russian oil. The deadline (27 August) to come to a deal before tariffs are introduced is nearing. To make matters worse, trade talks that were set to take place in late August have reportedly been postponed," said analysts at ING, in a note.
Ayushman Ojha contributed to this article