Oil prices rise again after recent drop amid Ukraine–Russia uncertainty
Oil prices rise again (photo: Getty Images)
On December 3, oil prices began rising again amid uncertainty over the next steps in the Russia–Ukraine war and continued attacks on Russian energy facilities, Bloomberg reports.
What the oil prices are
As noted, Brent crude was trading at around 63 dollars per barrel, although prices in recent days have shown no clear trend.
"The Brent crude price remained roughly unchanged in the low $60s over the last week as Russia-Ukraine peace talks continue," analysts said.
They added that oil markets are not pricing in a high likelihood of a rapid peace agreement or the possible lifting of sanctions on Russian oil.
What influences the market
Geopolitical tension is supporting market instability and adding a risk premium to prices, partially offsetting concerns about rising oversupply. This includes US statements regarding Venezuela, as well as hints from US President Donald Trump about possible Pentagon strikes on drug cartels on land.
The Kremlin stated that the Russian President Vladimir Putin held very useful talks with US envoys Steve Witkoff and Jared Kushner, although the sides did not reach an agreement on a peace plan for Ukraine.
Shares of European defense companies rose, while Ukrainian bonds fell.
The talks took place against the backdrop of another attack on a vessel linked to Russia, though responsibility for the strike has not been established.
Meanwhile, an industry report showed that US crude oil inventories rose by about 2.5 million barrels last week, and gasoline inventories also increased. New government data, including on demand, will be published later on Wednesday.
Market fluctuations
In recent days, the global oil market has shown sharp fluctuations. On November 26, prices began to rise after falling to a one-month low.
At the same time, excess supply and expectations of a possible peace agreement between Russia and Ukraine restrained further price increases.
Already on November 27, it became known that prices had fallen again amid forecasts of a potential ceasefire, which could open the door to easing Western sanctions on Russian oil.
On December 1, the market returned to growth after OPEC+ countries confirmed their intention to maintain a stable production level.
On December 2, prices showed stability, although market participants continue to assess risks related to drone attacks on Russia's energy infrastructure.
