Oil prices held steady in Asian trading on Tuesday following sharp gains in the previous session, as tensions between Russia and Ukraine remained elevated despite U.S.-led efforts to revive peace talks. Investors also weighed delayed U.S. inventory data.
As of 22:42 ET (03:42 GMT), February Brent crude futures inched up 0.1% to $61.98 per barrel, while West Texas Intermediate (WTI) crude futures rose 0.1% to $58.11 per barrel.
Both contracts surged more than 2% on Monday after U.S.-led attempts to advance negotiations between Russia and Ukraine appeared to stall.
Russia-Ukraine Tensions and Trump’s Iran Threat Take Center Stage
Russian President Vladimir Putin announced on Monday that Moscow would revise its negotiating stance following what the Kremlin described as Ukrainian drone attacks near one of his residences. Ukraine has denied targeting Putin, but the comments dampened hopes for a near-term de-escalation and raised concerns that the conflict may extend into next year.
Geopolitical tensions escalated further after U.S. President Donald Trump warned on Monday that the United States would strike Iran again if it attempted to rebuild its nuclear program.
Trump’s remarks highlighted ongoing instability in the Middle East, a region vital to global oil supplies, intensifying worries about potential disruptions or retaliatory actions involving major energy producers.
US Crude Oil Inventories Rise Unexpectedly — EIA Report
Investors digested U.S. Energy Information Administration (EIA) data for the week ending December 19, released later than usual due to the Christmas holidays. The report showed U.S. crude oil inventories increased by approximately 405,000 barrels, contrary to market expectations of a drawdown. Gasoline and distillate fuel stocks also rose, suggesting either softer demand or robust refinery output during the period.
Looking ahead, market participants are closely monitoring diplomatic developments in Eastern Europe, upcoming U.S. economic data, and OPEC+ guidance to assess demand prospects and supply policies for early 2026.
Sources: Investing
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