Oil prices edge higher on Thursday due to geopolitical tensions and stalled diplomatic negotiations, though persistent concerns over oversupply and weak demand capped significant gains. The uptick followed Ukrainian military strikes on Russian oil infrastructure, including the Druzhba pipeline, which raised the prospect of potential supply disruptions. Although operators reported that flows through the pipeline remained normal, the attacks contributed to market unease.
Due to the stated market sentiments, Brent crude futures had risen 0.24% to USD 62.82 per barrel, while U.S. West Texas Intermediate increased 0.23% to USD 59.18.
Concurrently, the absence of progress in Ukraine peace talks provided further support to prices. Representatives of U.S. President Donald Trump concluded recent discussions with the Kremlin without any breakthrough, leaving the conflict unresolved. Previously, expectations of a peace agreement had weighed on prices, as traders anticipated that such a deal would lift sanctions on Russia and reintroduce its oil into an already oversupplied global market.
Despite these upward pressures, underlying market fundamentals remained weak. Analysts noted that worries about excess supply and subdued demand continued to restrain prices.
“Despite the uptick, concerns about an oversupply glut and soft demand continue to weigh on crude oil prices.” IG market analyst Tony Sycamore stated in a note.
Reflecting these conditions, Fitch Ratings revised downward its oil price assumptions for 2025–2027, citing expectations that production growth will outpace demand.
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