Oil prices edged lower on Wednesday after Russia agreed to a U.S. proposal to halt attacks on Ukrainian energy infrastructure, raising the possibility of increased Russian oil supply in global markets.
Brent crude futures slipped 0.16% to $69.97 a barrel by 1130 GMT, while U.S. West Texas Intermediate (WTI) crude dropped 0.18% to $66.78. The decline followed Russian President Vladimir Putin’s decision to stop targeting Ukrainian energy facilities, though he did not commit to the full 30-day ceasefire sought by U.S. President Donald Trump.
The agreement eases concerns over supply disruptions, but Russian oil exports remain constrained by sanctions. While the move signals a step toward market stability, immediate changes in global energy flows are unlikely.
Meanwhile, fears of an economic slowdown pressured oil prices further. U.S. tariffs on Canada, Mexico, and China have added to concerns about weaker global trade and energy demand. Investors are also focused on the U.S. Federal Reserve’s policy meeting, where interest rates are expected to remain unchanged in the 4.25%-4.50% range.
Geopolitical tensions in the Middle East continue to add uncertainty. Israeli airstrikes in Gaza, which ended a brief ceasefire, and ongoing disruptions in the Red Sea have raised concerns about supply routes. Trump also reiterated U.S. military actions against Yemen’s Houthis and warned Iran against further involvement.
In the U.S., crude stockpiles rose by 4.59 million barrels in the week ending March 14, while gasoline inventories fell by 1.71 million barrels and distillate stocks declined by 2.15 million barrels, according to industry data. The Energy Information Administration’s official report is due later in the day.
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