Oil prices climbed more than 1% on Wednesday after Russia said talks with U.S. officials in Moscow failed to reach a compromise on a potential Ukraine peace deal that could have eased sanctions on its oil sector.
Brent crude gained 78 cents, or 1.3%, to $63.23 U.S., while U.S. West Texas Intermediate rose 85 cents, or 1.5%, to $59.49. Both contracts fell more than 1% in the previous session.
Russia and the U.S. failed to reach a compromise after a five-hour meeting between Russian President Vladimir Putin and U.S. President Donald Trump’s top envoys, the Russian government said on Wednesday.
Oil markets are awaiting the outcome of the talks to see if a deal could lead to the removal of sanctions on Russian companies, including major oil companies Rosneft and Lukoil, that would free up restricted oil supply.
Putin on Tuesday said that European powers are hindering U.S. attempts to end the war by putting forward proposals they knew would be “absolutely unacceptable” to Moscow.
Recent Ukrainian attacks on oil export sites on the Russian Black Sea coast have highlighted the geopolitical concerns stemming from the war.
Ukraine also hit two sanctioned tankers involved in transporting Russian oil in the Black Sea last week.
Putin on Tuesday said Russia will take measures against tankers of countries that help Ukraine, adding to geopolitical risks, analysts said.
Rising U.S. inventories, however, limited further gains.
The U.S. Energy Information Administration will release official government stockpile data on Wednesday.
