Oil prices stabilized after a slight decline on Tuesday, with investors looking to talks between US and Russian leaders on Friday for fresh impetus.

West Texas Intermediate crude traded near $63 a barrel after falling 1.2% in the previous session, while Brent closed near $66. US Secretary of State Marco Rubio spoke with his Russian counterpart, Sergei Lavrov, to prepare for a summit between Donald Trump and Vladimir Putin, although he reiterated that the meeting was unlikely to produce a breakthrough in the Ukraine conflict.

Oil traders are closely monitoring the talks, particularly the possibility of easing US sanctions on Russia, a member of OPEC+, which could boost supply. Prices have fallen this year as the producer group accelerates production increases despite the prospect of a supply glut later in the year as US tariffs suppress global demand.

The US Department of Energy raised its forecast for a global supply glut this year to 1.7 million barrels per day on Tuesday, and the International Energy Agency will release its forecast on Wednesday. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) maintained a more optimistic outlook, predicting a tighter global oil market than previously projected next year.

Meanwhile, a US industry report showed national inventories increased slightly last week. Official data will be released on Wednesday. (alg)

Source: Bloomberg