Oil Prices Rise Amid Ukraine Peace Process Stalling

Oil prices edged higher and are on track for their first weekly gain in three weeks amid fading hopes for a near-term peace deal between Russia and Ukraine. Despite ongoing military offensives and stalled negotiations, President Trump is actively seeking to arrange a summit between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy to broker peace. Analysts note that the less likely a ceasefire appears, the greater the risk of tougher U.S. sanctions on Russia, which could further influence oil supply dynamics. U.S. crude inventories have drawn down, supporting demand optimism in the world’s largest fuel consumer, while uncertainties remain due to geopolitical tensions and potential sanctions. Russian attacks on Ukrainian infrastructure, including oil facilities and pipelines to Europe, have contributed to supply concerns, while Hungary reported a suspension of Russian oil deliveries via the Druzhba pipeline. Market watchers await additional data, such as U.S. rig counts, for deeper insights into supply prospects as the conflict and diplomatic efforts continue to impact global oil markets.