Oil prices slightly fell on Friday on worries over weakening US demand and Washington's technical waiver easing sanctions on Lukoil, while uncertainty surrounding the Russia-Ukraine peace process continued to cloud market sentiment.
International benchmark Brent crude was trading at $62.99 per barrel at 10.36 a.m. local time (0736 GMT), down around 0.25% from the previous close of $63.15.
US benchmark West Texas Intermediate (WTI) also decreased by about 0.35% to $59.27, compared to $59.48 in the prior session.
Commercial crude oil inventories in the world's largest oil consumer increased by about 600,000 barrels, defying expectations of a 1.9 million-barrel draw. According to the US Energy Information Administration (EIA), gasoline stocks rose by around 4.5 million barrels, while the country's average daily crude output edged up by 1,000 barrels.
The figures reinforced perceptions of weakening demand in the US at a time when production continues to rise, an outlook that weighed on prices.
Adding to the downward pressure, the US Treasury Department's Office of Foreign Assets Control (OFAC) issued a waiver authorizing transactions with Lukoil's retail fuel stations outside Russia through April 29, 2026, easing supply concerns.
Washington imposed sanctions in October on Russia's two largest oil companies, Rosneft and Lukoil, and 34 of their subsidiaries to increase pressure on Moscow as US President Donald Trump seeks to broker a peace deal to end the war in Ukraine.
Uncertainty surrounding diplomatic efforts on the Ukraine peace talks also affected sentiment.
In an interview with India Today TV, Russian President Vladimir Putin said he agreed with some elements of Trump's plan and disagreed with others, describing the process as "a complex work."
On Tuesday, Putin met with Trump's special envoy Steve Witkoff and his son-in-law and informal adviser Jared Kushner at the Kremlin to discuss Washington's revised draft peace plan for Ukraine. Russian presidential aide Yuri Ushakov described the talks as "constructive, very useful and informative."
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr