LONDON, Dec 10 — Oil prices steadied on Wednesday as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on United States (US) interest rates.
After declines of about one per cent in the previous session, Brent crude was up seven cents, or 0.1 per cent, at US$62.01 a barrel by 1039 GMT while U.S. West Texas Intermediate crude gained 10 cents, or 0.2 per cent, to US$58.35.
On Tuesday, Market sources, citing API figures, said that US crude inventories fell by 4.78 million barrels last week while gasoline stocks rose by seven million barrels and distillate inventories swelled by 1.03 million barrels.
Meanwhile, markets were expecting the US Federal Reserve to reduce its main interest rate by a quarter of a point on Wednesday to support a cooling labour market.
Lower interest rates could lift oil demand by boosting economic growth, but gains were capped by concern that supply could outpace demand. In a note, ING analysts said that while the oil market is moving deeper into an expected glut, Russian supply remains a risk.
Ukrainian President Volodymyr Zelenskiy said his country and its European partners will soon present the US with "refined documents" on a peace plan to end the war with Russia.
A peace deal between Ukraine and Russia could lead to the removal of international sanctions on Russian companies, freeing up restricted oil supplies.
Meanwhile, the Energy Information Administration said it expects US oil production this year to rise above earlier estimates, raising its 2025 forecast by 20,000 barrels to average a record 13.61 million barrels per day.
However, it lowered its 2026 production forecast by 50,000 barrels to 13.53 million bpd.
