Oil prices were steady on Wednesday (December 10) as investors monitored progress in Russia-Ukraine peace talks and awaited a decision on US interest rates.

After a decline of about 1% in the previous session, Brent crude rose 7 cents, or 0.1%, to $62.01 a barrel at 10:39 GMT, while US West Texas Intermediate crude rose 10 cents, or 0.2%, to $58.35.

Market sources citing API figures said on Tuesday that US crude inventories fell by 4.78 million barrels last week, while gasoline inventories rose by 7 million barrels and distillate inventories swelled by 1.03 million barrels. Government data is due at 15:30 GMT.

Meanwhile, the market expects the US Federal Reserve to cut its key interest rate by a quarter point on Wednesday to support the cooling labor market.

Lower interest rates could boost oil demand by boosting economic growth, but the increase is limited by concerns that supply could exceed demand. While the oil market is moving closer to the anticipated oversupply, Russian supply remains a risk, ING analysts said in a note.

Ukrainian President Volodymyr Zelenskiy said his country and its European partners will soon submit to the US a "refined document" on a peace plan to end the war with Russia.

A peace deal between Ukraine and Russia could lead to the lifting of international sanctions on Russian companies, which could free up restricted oil supplies.

Meanwhile, the Energy Information Administration (EIA) said it expects US oil production this year to rise more than previously expected, raising its 2025 forecast by 20,000 barrels to a record average of 13.61 million barrels per day.

However, the organization lowered its 2026 production forecast by 50,000 barrels to 13.53 million barrels per day. (alg)

Source: Reuters.com