(RTTNews) – Crude oil rose on Wednesday as doubts were cast over the potential success of a new US proposal to end the Russia-Ukraine war after European Commission chief Ursula von der Leyen accused Russia of having “no real intention” to negotiate peace.
WTI crude oil for January delivery was last seen trading $0.61 (or 1.05%) higher at $58.56 a barrel.
Inspired by the success of the Gaza peace plan in the Middle East, which is now entering its second phase, US President Donald Trump is working hard to end the Russia-Ukraine war.
Trump’s first proposal, which included a 28-point peace plan, was criticized as being biased in favor of Russia, forcing Ukraine to cede more territory to Russia.
Therefore, the Trump administration came up with a new, shorter 10-point peace proposal, which leaves “sensitive elements” in the agreement to be discussed by the two countries among themselves.
Ukrainian President Volodymyr Zelensky said he was ready to meet with Trump to discuss problems in the agreement.
Russia earlier said it had reached a “consensus” with the White House to end the war.
Russia also confirmed that Trump’s foreign envoy Steve Witkoff is scheduled to arrive in Russia for talks with President Vladimir Putin.
If the proposed deal is successful, it could result in sanctions being lifted and the free flow of Russian oil into the markets.
However, lack of clarity on demands from the Russian side helped oil prices recover the ground lost early in the trading session.
European Commission head Ursula von der Leyen accused Russia of having “no real intention” for peace talks and described the situation surrounding the war in Ukraine as “untenable” and “dangerous”.
Data provided by the American Petroleum Institute showed that for the week ended November 21, US crude oil inventories decreased by 1.9 million barrels after building by 4.4 million barrels in the previous week.
For the week ended Nov. 21, U.S. crude oil inventories rose by 2.77 million barrels, according to the U.S. Energy Information Administration, down from a decline of 3.426 million barrels the previous week.
For the same period, gasoline inventories increased by 2,513,000 barrels, distillate inventories (which include heating oil and diesel) increased by 1,147,000 barrels, and heating oil inventories increased by 57,000 barrels.
Furthermore, reports indicate that Trump has introduced Kevin Hassett as the next US Federal Reserve Chairman as the current chairman’s term ends in May 2026. Trump and Hassett favor a “low-interest rate” regime.
For the past few days, three Fed officials have been advocating another rate cut in December.
Economic data released in the US after the shutdown is supporting the demand for additional rate cuts.
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