Oil prices climbed on Wednesday after sliding to a one-month low in the previous session, though an expected supply glut and a potential Russia-Ukraine peace deal capped gains.

Brent crude futures rose 28 cents, or 0.45%, to $62.76 a barrel at 0708 GMT, while U.S. West Texas Intermediate crude futures gained 26 cents, or 0.45%, to $58.27 a barrel.

"The mild gains feel more like a technical breather than a trend," said Priyanka Sachdeva, a senior market analyst at Phillip Nova. "Any upticks we see – today or going forward - are largely driven by softer inventory signals and pockets of short-covering, but these spikes will be short-lived and fragile."

"The market remains fundamentally skewed to the downside, with investors increasingly pricing in an oversupplied 2026 and no convincing demand catalyst to offset it."

Both Brent crude and WTI settled down 89 cents on Tuesday after Ukrainian President Volodymyr Zelenskiy told European leaders that he was ready to advance a U.S.-backed framework for ending the war with Russia, with only a few points of disagreement remaining.

"If finalised, the deal could rapidly dismantle Western sanctions on Russian energy exports," potentially driving WTI prices to around $55, IG market analyst Tony Sycamore said in a client note.

"For now, the market waits for more clarity, but the risk appears to be for lower prices unless talks falter."

U.S. President Donald Trump said he directed his representatives to meet separately with Russian President Vladimir Putin and Ukrainian officials, while a Ukrainian official said Zelenskiy could visit the U.S. in the next few days to finalise a deal.

Britain, Europe and the U.S. have tightened sanctions on Russia recently in a stepped-up pressure campaign and Russian oil purchases by India - a key buyer - are set to hit their lowest level in three years in December.

U.S. crude stocks fell last week while fuel inventories rose, market sources said on Tuesday, citing American Petroleum Institute figures. U.S. crude stocks were previously estimated in a Reuters poll to have risen by 1.86 million barrels in the week that ended on November 21.

Official stockpile data from the Energy Information Administration is due on Wednesday at 10:30 a.m. ET (1530 GMT).

Crude prices have gotten some support from expectations for a potential U.S. Federal Reserve interest rate cut in December following economic data releases showing lower retail spending and softer inflation. Lower rates would stimulate economic growth and bolster demand for oil.

Source: Investing.com