WASHINGTON (dpa-AFX) - Crude oil surged on Wednesday as doubts were cast on the possible success of the new U.S. proposal to end the Russia-Ukraine war after European Commission Chief Ursula von der Leyen accused Russia of having 'no real intent' for peace talks.
WTI Crude Oil for January delivery was last seen trading up by $0.61 (or 1.05%) at $58.56 per barrel.
Motivated by the success of the Gaza Peace Plan in the Middle East, which is now entering its second phase, U.S. President Donald Trump is working hard to end the Russia-Ukraine war.
Trump's earlier proposal, which included a 28-point peace plan, was criticized for being tilted in favor of Russia, compelling Ukraine to cede more territories back to Russia.
Hence, the Trump administration brought up a new, shorter 10-point peace proposal, which leaves the 'sensitive elements' in the agreement to be discussed by both the nations among themselves.
Ukraine President Volodymyr Zelenskyy stated that he was ready to meet Trump to discuss the pain points in the deal.
Russia had earlier stated that it had arrived at a 'common understanding' with the White House to end the war.
Russia also confirmed that Trump's overseas envoy Steve Witkoff is set to arrive in Russia to negotiate with President Vladimir Putin.
If the proposed deal comes through, it could result in the lifting of sanctions and allow a free flow of Russian oil into the markets.
However, the lack of clarity on the demands from the Russian side helped oil prices to gain back the ground lost initially in the trading session.
European Commission Chief Ursula von der Leyen accused Russia of having 'no real intent' for peace talks and described the situation surrounding the war in Ukraine as 'volatile' and 'dangerous.'
Data supplied by the American Petroleum Institute revealed that for the week ending November 21, U.S. crude oil inventories decreased by 1.9 million barrels following a 4.4 million-barrel build in the previous week.
According to the U.S. Energy Information Administration, for the week ending November 21, crude oil inventories in the U.S. rose by 2.77 million barrels, rebounding from a 3.426 million barrel drop of the previous week.
For the same period, gasoline inventories surged by 2,513,000 barrels, distillate inventories (which include heating oil and diesel) increased to 1,147,000 barrels, and heating oil inventories rose by 57,000 barrels.
In addition, reports indicate that Trump has pitched Kevin Hassett as the next U.S. Federal Reserve Chair as the current Chair's term ends in May 2026. Trump and Hassett are in favor of a 'low-interest-rate' regime.
Over the past few days, three Fed officials have been advocating another rate cut in December.
Economic data releases in the U.S. after the shutdown have been favoring the calls for an additional rate cut.
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