West Texas Intermediate (WTI) crude oil futures experienced an uptick, approaching $63 per barrel on Thursday, effectively ending a two-day downward trend. This rise was buoyed by a looming risk premium in anticipation of discussions between U.S. President Donald Trump and Russian President Vladimir Putin. President Trump issued a stern warning late Wednesday, indicating that Russia would face "very severe consequences" if President Putin does not take steps to resolve the ongoing Ukraine conflict. Although Trump did not specify the repercussions, he has alluded to implementing economic sanctions, potentially targeting Russian oil, should Friday's negotiations in Alaska prove unfruitful.
Nevertheless, the upward momentum was tempered as oil prices remained at a more than two-month low, influenced by oversupply anxieties following a pessimistic forecast from the International Energy Agency (IEA). The agency projected a record global surplus of 2.96 million barrels per day by 2026, driven by an increase in production from OPEC+ members and their affiliates. Further adding to the bearish sentiment, recent U.S. government data revealed a rise in crude oil inventories by 3.036 million barrels in the past week, contrary to expectations of a decline, thus reflecting subdued demand.
