Summary
- U.S. crude stocks rise vs expected draw
- Peace talks on Russia-Ukraine stall
(Reuters) – Oil prices were steady on Thursday, with the market focused on Ukraine’s attacks on Russian oil assets, while stalled peace talks tempered expectations of a deal restoring Russian oil flows.
Brent crude rose 24 cents, or 0.4%, to $62.91 at 1030 GMT, while U.S. West Texas Intermediate rose 33 cents, or 0.6%, to $59.28.
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Ukraine hit the Druzhba oil pipeline in Russia’s central Tambov region, a Ukrainian military intelligence source said on Wednesday, the fifth attack on the pipeline that sends Russian oil to Hungary and Slovakia. The pipeline operator and Hungary’s oil and gas company later said supplies were moving through the pipeline as normal.
“Ukraine’s drone campaign against Russian refining infrastructure has shifted into a more sustained and strategically coordinated phase,” consultancy Kpler said in a research report.
“This has pushed Russian refining throughput down to around 5 million barrels per day between September and November, a 335,000 bpd year-on-year decline, with gasoline hit hardest and gasoil output also materially weaker,” the report added.
The perception that progress on a peace plan for Ukraine was stalling also supported prices, after U.S. President Donald Trump’s representatives emerged from peace talks with the Kremlin with no specific breakthroughs on ending the war. Trump said it was unclear what happens now.
Previously, expectations of an end to the war had pressured prices lower, as traders anticipated a deal would involve ending sanctions on Russia and allow Russian oil back into an already oversupplied global market.
Meanwhile, U.S. crude and fuel inventories rose last week as refining activity picked up, the Energy Information Administration said on Wednesday.
Crude inventories rose by 574,000 barrels to 427.5 million barrels in the week ended November 28, the EIA said, compared with analysts’ expectations in a Reuters poll for an 821,000-barrel draw.
Fitch Ratings on Thursday cut its 2025-2027 oil price assumptions to reflect market oversupply and production growth that is expected to outstrip demand.
Additional reporting by Mohi Narayan in New Delhi and Colleen Howe in Beijing. Editing by Jane Merriman
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