Oil steadies near a two-month low amid rising supply concerns

Oil prices remained near two-month lows on Wednesday as optimism over a potential Russia-Ukraine peace deal weighed on the market, while a decline in U.S. crude stockpiles provided some support.

By 12:56 GMT, Brent crude had slipped 19 cents to $72.83 a barrel, while U.S. West Texas Intermediate (WTI) futures dropped 13 cents to $68.80.

According to ING commodities strategists, improving prospects for a Russia-Ukraine peace deal and a potential minerals agreement between the U.S. and Ukraine could reduce supply uncertainty by bringing Russian sanctions closer to being lifted.

Additionally, Saxo Bank analyst Ole Hansen pointed out that U.S. policies, including initiatives to boost Iraqi oil exports and potential tariff-related trade tensions, could increase downside risks for oil prices.

However, according to the American Petroleum Institute, oil found some support as U.S. crude inventories fell by 640,000 barrels in the week ending February 21. Official stockpile data is expected later on Wednesday.

Oil prices have faced pressure amid concerns that Trump’s tariff policies on China and other trading partners could slow economic growth.