Market News

(Bloomberg) -- Oil edged up as investors weighed a muddled outlook for a ceasefire in Ukraine and escalating tensions between the US and Venezuela.

Brent traded around $63 a barrel after inching 0.4% higher on Wednesday, while West Texas Intermediate was above $59. US President Donald Trump said a meeting between his envoy and President Vladimir Putin was “reasonably good” but acknowledged the outcome for a peace deal was uncertain.

“High-level negotiations between US and Russian officials have failed to produce a diplomatic breakthrough in ending the nearly four-year war in Ukraine, leaving the prospects of a near-term end to the conflict remote,” RBC Capital Markets analysts including Helima Croft wrote. “We would caution against overexcitement about future peace talks that do not include all the relevant stakeholders at the table.”

Separately, Trump reiterated the US will start striking drug cartels on land in Venezuela very soon. American forces have been massing in the region, with the situation adding some risk premium to oil prices, partially offsetting concerns around a surplus that’s expected to swell to a record next year.

Oil is on track for an annual loss as OPEC+ brings back idled output and other producers boost supply. Earlier this year, Chinese buying helped to prop up the market, but Hengli Petrochemical International Pte. Chief Executive Officer Janet Hong sees the nation’s demand subdued until at least mid-2026.

“No matter how much demand is going to come in, you just have a lot of supply,” Trafigura Group’s Chief Economist Saad Rahim said at the Financial Times Commodities Asia Summit in Singapore on Wednesday. “The path of least resistance for prices is likely down.”

--With assistance from John Liu, Sarah Chen and Yongchang Chin.