Global oil prices rebound after hitting one-month low — Reuters
Photo: Global oil prices began to rise after hitting a one-month low (Getty Images)
Global oil prices began to rise on Wednesday after falling to a one-month low. However, excess supply and a potential peace agreement between Russia and Ukraine limited the growth, according to Reuters.
Brent crude futures rose 27 cents, or 0.43%, to $62.75 per barrel, while West Texas Intermediate crude futures rose 24 cents, or 0.41%, to $58.19 per barrel.
"The mild gains feel more like a technical breather than a trend. Any upticks we see – today or going forward - are largely driven by softer inventory signals and pockets of short-covering, but these spikes will be short-lived and fragile," says Priyanka Sachdeva, senior market analyst at Phillip Nova.
She also stresses that the market remains fundamentally skewed to the downside as investors increasingly count on a supply glut in 2026 and no compelling demand catalyst to offset it.
On Tuesday, Brent and WTI crude oil prices fell 89 cents after Ukrainian President Volodymyr Zelenskyy told European leaders he was ready to push forward with a US-backed plan to end Russia's war against Ukraine.
"If finalised, the deal could rapidly dismantle Western sanctions on Russian energy exports. For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter," Reuters sources add.
China's large state-owned refineries have suspended purchases of ESPO crude oil following US sanctions against producers Rosneft and Lukoil.
At the same time, some private oil refineries, which are usually more risk-tolerant when it comes to purchasing sensitive oil, have also recently been avoiding this type of oil from the Russian Far East.
Also, after the announcement of US sanctions against Lukoil and Rosneft, several European countries with Lukoil refineries began to look for solutions to prevent the plants from shutting down.
