Oil prices rose more than 1% on Wednesday (December 3) after Russia said negotiations with U.S. officials in Moscow failed to reach a compromise on a potential peace deal for Ukraine.
At the close of trading on December 3, Brent crude futures gained 78 cents (or 1.3%) to $63.23 per barrel. WTI crude added 85 cents (or 1.5%) to $59.49 per barrel. Both benchmarks had fallen more than 1% in the previous session.
The Russian government said on Wednesday that Russia and the U.S. failed to reach a compromise following a five-hour meeting between Russian President Vladimir Putin and top envoys of U.S. President Donald Trump.
The oil market is awaiting the outcome of the talks to see whether a deal could lead to the lifting of sanctions on Russia, potentially releasing constrained oil supplies.
On December 2, Putin said European powers were hindering U.S. efforts to end the war by putting forward proposals they knew were “completely unacceptable” to Moscow.
Recent Ukrainian attacks on Russian oil export sites along the Black Sea coast have raised geopolitical concerns stemming from the conflict.
Putin also said on December 2 that Russia would take measures against tankers from countries supporting Ukraine, adding to geopolitical risks.
However, rising U.S. crude inventories capped the increase in oil prices.
The American Petroleum Institute (API) reported on December 2 that U.S. crude and fuel stockpiles increased in the past week.
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