Oil Prices Slip on Rising U.S. Crude Stockpiles and Russia-Ukraine Peace Talks

Oil prices declined in Asian trading on Thursday following a one-week high, pressured by a surprise build in U.S. crude inventories and renewed geopolitical developments.

Brent crude futures dipped 0.3% to $75.83 per barrel, while WTI crude futures slipped 0.4% to $71.82. The downturn was driven by a 3.34 million barrel surge in U.S. crude stockpiles, as reported by the American Petroleum Institute (API), surpassing expectations of a 2.2 million barrel rise. Gasoline inventories also increased by 2.83 million barrels, while distillate stocks fell by 2.69 million barrels, signaling mixed demand trends. Traders now await the U.S. Energy Information Administration’s (EIA) official data for further market direction.

Meanwhile, high-level talks between U.S. and Russian officials in Saudi Arabia have sparked speculation about a potential resolution to the Ukraine conflict. The absence of Ukrainian representatives in these negotiations has raised concerns about the legitimacy of any resulting agreement. A successful deal could ease sanctions on Russian oil, boosting global supply and weighing further on prices.

Despite bearish pressures, supply concerns have provided some support. Ukrainian drone strikes targeted a key Russian crude-pumping station, temporarily disrupting Kazakhstan’s oil exports. Additionally, harsh winter conditions in the U.S. are expected to cut North Dakota’s oil output by 150,000 barrels per day.

Further stabilizing prices, reports suggest OPEC+ may delay increasing production due to market fragility. Analysts at ING warn that if the group holds back supply hikes, it could erase this year’s projected surplus, lending support to oil prices.

Investors remain focused on upcoming supply-demand data and geopolitical shifts, with volatility likely to persist in the near term.