Oil prices dip to $62.34 amid Ukraine peace talks, Fed rate anticipation

Oil markets experience cautious trading as Ukraine negotiations raise supply concerns for traders

Oil prices edged lower on Tuesday as markets weighed ongoing Ukraine-Russia peace negotiations and the looming U.S. Federal Reserve interest rate decision. Brent crude traded around $62.36-$62.42 per barrel, down about 0.21 percent from the prior session, while West Texas Intermediate (WTI) hovered near $59-$60 per barrel following a recent 2 percent tumble. This modest decline reflects trader caution over potential supply increases from Russia and monetary policy signals that could impact global demand.

Brent crude settled with a slight drop to $62.34 per barrel, ranging between $62.33 and $62.55 during the session, marking a 0.24 percent decrease from Monday’s close of $62.49. WTI held steady near $59 after a sharp 2 percent fall the previous day, with recent readings showing it at $60.22 on December 8 before edging to around $58.68 in some exchanges. Over the past month, Brent has fallen 2.56 percent and remains 13.54 percent below year-ago levels, while crude benchmarks broadly sit 11-12 percent lower annually amid persistent supply gluts.

Prices have fluctuated recently, with Brent peaking near $63.39 earlier in the week and dipping to lows around $61.57 in late November. The current levels follow a brief uptick on December 1, when Brent hit $63.32 and WTI $59.45, but momentum shifted as geopolitical headlines dominated. Traders now eye weekly reports from the Energy Information Administration (EIA), International Energy Agency (IEA), and OPEC for fresh supply-demand insights.