West Texas Intermediate (WTI) crude oil prices softened in early Asian trading on Wednesday, drifting to around $62.05. The pullback comes as optimism grows over potential peace talks aimed at ending Russia’s invasion of Ukraine, following discussions between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy.
Market participants anticipate that any agreement to legitimize or conclude the conflict could ease sanctions on Russian crude. Such a move would likely boost global supply and place additional pressure on oil prices. Trump indicated that arrangements are underway for a meeting between Russian President Vladimir Putin and Zelenskyy, potentially leading to a trilateral summit involving all three leaders.
Traders remain focused on developments related to a possible ceasefire. A breakthrough deal could open the door to fewer restrictions on Russian oil exports, though Moscow has already managed to maintain most of its crude shipments despite sanctions.
On the supply side, the American Petroleum Institute (API) reported a larger-than-expected decline in US crude inventories last week. Stockpiles fell by 2.4 million barrels in the week ending August 15, compared with a forecasted draw of 1.2 million barrels and a prior build of 1.5 million. The stronger-than-expected draw signals resilient demand, which may help limit WTI’s downside in the near term.
