International oil prices rose on Wednesday due to concerns over the prospects of oil supply disruption, and peace talks to end the Russian invasion of Ukraine seem to drag. Brent crude futures climbed 14 cents, or 0.21%, to 65.93 a barrel as of 0149 GMT. September West Texas Intermediate crude rose on the expiry on Wednesday by 37 to six dollars and 72 U.S. cents a barrel, representing a one percent increase, with the contract of October at six dollars and 92 U.S. cents, taking a 15 cent increase.
Having dropped by over 1 percent on Tuesday due to hopes of the conclusion of a peace deal that might relieve sanctions on Russia and expand the world supply, prices recovered, however, in uncertainty. The president of the United States Donald Trump proposed that the United States could give air support but admitted that Russian president Vladimir Putin may not be willing to achieve an agreement. Trump added that he was planning a Putin visit with Ukrainian President Zelenskiy, and hoped to stage a trilateral summit after talks with Hungary Prime Minister Viktor Orban. Russia has not validated.
A rapid end to the Russia-Ukraine war appears a remote possibility, but a lot of hard work can be done to make the economy stable again, according to Daniel Hynes, senior commodity strategist at ANZ.
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Moreover, the future of U.S oil demand might undergo temporary pressure, considering that BP noted that its 440,000 barrels a day refinery at Whiting, in Indiana, is out of operation due to severe flooding, which supplies large proportion of fuel to the Midwest region.
As the situation of supplies becomes even more serious and geopolitics continues, the prices of oil increase once again, another evidence of instability and fluctuation in the market.
