On Wednesday, oil prices experienced an uptick, driven by the reemergence of supply concerns. The protracted nature of peace negotiations regarding Russia’s invasion of Ukraine suggests that sanctions on Russian crude will remain in effect, thereby increasing the likelihood of additional restrictions on its purchasers. Brent crude futures stood at $65.93 per barrel as of 0149 GMT, reflecting an increase of 14 cents, or 0.21%. U.S. West Texas Intermediate crude futures for September delivery, which are set to expire on Wednesday, increased by 37 cents to $62.72 a barrel, reflecting a rise of 0.59%. The more-active October contract traded at $61.92 a barrel, reflecting an increase of 15 cents. Prices experienced a decline of over 1% on Tuesday, driven by optimism surrounding a potential resolution to the conflict, which could lead to the relaxation of sanctions on Russia and an uptick in global supply.

However, despite remarks from U.S. President Donald Trump on Tuesday suggesting that the U.S. might offer air support as part of a negotiation to conclude Russia’s conflict in the country, he also acknowledged that Russian President Vladimir Putin may ultimately be disinclined to reach an agreement. On Monday, Trump announced his efforts to facilitate a meeting between Russian President Vladimir Putin and Ukrainian President Zelenskiy, which would subsequently be succeeded by a trilateral summit involving all three leaders. On Tuesday, Trump indicated that he had engaged in discussions regarding the potential for talks between Zelenskiy and Putin, with Hungary’s Prime Minister Viktor Orban being part of these conversations. Russia has yet to affirm its participation in discussions with Zelenskiy.

“The likelihood of a quick resolution to the conflict with Russia now seems unlikely,” said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday.
In the United States, BP announced on Tuesday that operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were impacted by flooding resulting from a severe thunderstorm overnight, which could potentially influence the facility’s crude demand. The site serves as a crucial supplier of fuel for the Midwest market.