(RTTNews) – Crude oil rose on Thursday as hopes for an end to the Russia-Ukraine war diminished, with Russia adamant on keeping occupied territories while Ukraine is unwilling to give up the areas.
WTI crude oil for January delivery was last seen trading up $0.70 (or 1.19%) at $59.65 a barrel.
US Envoy to Russia Steven Witkoff spoke for more than four hours with Russian President Vladimir Putin in Moscow on Tuesday, following back-to-back talks with Russia and Ukraine, in a series of efforts by US President Donald Trump to end the Russia-Ukraine war.
The talks did not come close to signing an agreement as Putin remains adamant on retaining Russian-occupied territories in Ukraine, particularly Donbass and the Novorossiya region.
Ukraine has so far rejected demands to hand over its territory to Russia, a contention that Ukraine’s friendly European countries have also supported. European leaders criticized Putin for being “insincere” in efforts to resolve the conflict peacefully.
With no compromise avoided, Trump appeared cautiously optimistic about the future outcome of his peace plan.
Today, Ukrainian officials are in the US to discuss with their American counterparts on taking things to the next step.
The sanctions imposed by the US on Russian oil continue even as traders want the war to end soon and thus the free flow of Russian oil in the market.
On the war front, Ukraine continues to target oil refineries in Russia and Russian-flagged ships operating at sea.
Reuters reported that Ukraine attacked the Druzhba oil pipeline in Russia’s central Tambov region, damaging the Taganrog-Lipetsk section. However, Russia has not yet officially confirmed it.
Ukraine has carried out approximately 14 attacks on Russian refineries in November alone.
The crisis arising in South America is deepening after the US stepped up its military preparations for an attack on Venezuela.
Accusing Venezuelan President Nicolas Maduro of promoting narco-trafficking and human-trafficking, which also has influence in the US, the Trump administration is bracing for a military confrontation.
Rejecting Trump’s allegations, Maduro accused the US of targeting his rich oil reserves under the pretext of curbing the illegal drug trade.
Although tensions have eased slightly after Maduro confirmed yesterday that he had “respectful and cordial” discussions with Trump about 10 days ago, the threat has raised the risk premium for oil prices.
At its most recent meeting, the OPEC alliance reaffirmed last month’s commitment to freeze production growth until the first quarter of 2026.
Saudi Arabia’s state producer Aramco has cut the price of its key Arab Light crude grade by 60 cents, Bloomberg reported.
Oil prices are seen falling by about 16% in 2025, due to additional supply from the US and a production increase by OPEC starting this April.
Concerns over potential oversupply arose after yesterday’s US Energy Information Administration data for the week ended November 28 showed crude oil stockpiles rose by 0.57 million barrels. The data also showed a rise in gasoline and distillate stocks.
In the US, markets are decisively convinced that low interest rate advocate Kevin Hassett will be Trump’s preferred candidate to replace the current US Federal Reserve chair next year. With recent jobs data indicating weakness in the US labor market, traders are expecting a rate cut by the Fed next week.
Concerns about oversupply and expectations of a rate cut limited gains in oil prices.
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