Oil prices fell on Wednesday, as diplomatic steps toward ending the Russia-Ukraine war and uncertainty over the US Federal Reserve's (Fed) upcoming interest rate decision drove prices lower.
International benchmark Brent crude was trading at $62.12 per barrel at 9.44 a.m. local time (0644 GMT), down around 0.3% from the previous close of $62.33.
US benchmark West Texas Intermediate (WTI) also decreased by about 0.4% to $58.46, compared to $58.69 in the prior session.
UK Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz, and Ukrainian President Volodymyr Zelenskyy met at a summit in London to discuss steps needed to achieve a lasting and just peace in Ukraine.
The leaders emphasized the importance of US-led peace talks for Europe's security and expressed support for progress made in the process.
Experts argue that achieving lasting peace in the Russia-Ukraine conflict would reduce threats to the region's energy infrastructure and increase predictability on the supply side. This is expected to put downward pressure on oil prices in the short term.
Meanwhile, Wednesday's Fed interest rate decision remains in focus. Money market pricing suggests an 87% probability that the Fed will cut rates at tomorrow's meeting, although persistent inflation concerns and the strong outlook for the US economy signal that monetary easing next year may be limited.
While lower interest rates could support economic activity—thereby boosting oil demand—some analysts note that this effect may remain limited for now.
Market participants are also closely watching the US Energy Information Administration's December 2025 Short-Term Energy Outlook report, set for release later today.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr