Crude slipped as US inventory builds and Russia-Ukraine talks shifted sentiment

Oil prices retreated on Thursday, erasing the previous session’s gains as traders shifted their attention to Russia-Ukraine peace talks and rising US fuel inventories. Brent and WTI spent much of the day more than $1 lower, extending losses to levels last seen in October.

Brent crude settled at $61.28 a barrel, down 93 cents or 1.49%.

WTI closed at $57.60 a barrel, a decline of 86 cents or 1.47%.

The market came under pressure after US government data showed another build in refined product inventories. The Energy Information Administration reported gasoline stocks rose by 2.5 million barrels last week, with distillate inventories increasing by a similar volume, reinforcing expectations of ample supply heading into year-end.

Sentiment was further weighed by signs of progress in peace negotiations between Russia and Ukraine, which traders said could pave the way for more Russian crude to return to global markets.

The pullback followed a short-lived rally on Wednesday, when prices firmed after the US seized an oil tanker off Venezuela’s coast, an action that briefly heightened concerns over geopolitical risks and potential supply disruptions.

Written by: Farid Muzaffar