Oil steadied as investors tracked risk-on mood in wider financial markets, which countered the impact of progress in peace talks over Ukraine that could pave the way for increased crude supplies.

Brent held near $63 a barrel after gaining more than 1% on Monday, while West Texas Intermediate was below $59. Asian stocks tracked gains on Wall Street on the outlook for further rate cuts from the Federal Reserve. Adding to the upbeat mood, US President Donald Trump and Chinese counterpart Xi Jinping held their first talks since agreeing to a tariff truce last month. 

On Ukraine, Trump struck a positive tone on the prospects for a ceasefire after talks narrowed disagreements over his latest peace proposal. Should a deal eventually be struck, the US and other nations may ease sanctions against Russia, potentially boosting oil supplies into a market facing a glut.

"While oil has benefited from the broader risk-on move in markets, peace talks will remain crucial,"said Warren Patterson, head of commodities strategy at ING Groep NV. "Any positive progress in these talks leaves downside risk for prices, with it potentially removing a key supply risk."

Crude has retreated this year, with futures set for a fourth monthly decline in November, which would be the longest losing run since 2023. The drop reflects rising production, with OPEC+ as well as countries outside the alliance adding barrels. Crude stockpiles have been in surplus above the five-year average since late-July, according to BloombergNEF.

Brent for January settlement dipped 0.3% to $63.21 a barrel at 11:09 a.m. in Singapore.

WTI for January delivery slipped 0.2% to $58.73 a barrel.

Source : Bloomberg.com