Oil price hits $65.90/barrel as investors await Ukraine peace talks

Oil prices rose slightly on Wednesday, August 20, 2025, as investors await the next steps in talks to end Russia’s invasion of Ukraine.

Brent crude futures were at $65.90 a barrel, up 11 cents, at 0405 GMT.

U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, were at $62.40 a barrel, up 5 cents. The more-active October contract was at $61.90 a barrel, up 13 cents.

Prices settled down more than 1% on Tuesday on optimism a deal to end the war seemed closer, which would mean the easing sanctions on Russia and an increase in global supply.

“Crude markets are in limbo… continued protracted peace talks will keep the market on its toes,” said Emril Jamil, a senior analyst at LSEG.

Despite comments from United States President Donald Trump on Tuesday, the U.S. might provide air support as part of a deal to end Russia’s war in the country.

Naira trades N1,534/$ in official market

He also conceded Russian President Vladimir Putin might not want to make a deal after all.

Trump on Monday said he was arranging a meeting between Russian President Vladimir Putin and Zelensky, to be followed by a trilateral summit among the three presidents.

Trump said on Tuesday he discussed holding possible talks between Zelensky and Putin in Hungary with the country’s Prime Minister Viktor Orban.

Russia has not confirmed it will take part in talks with Zelensky.

“The likelihood of a quick resolution to the conflict with Russia now seems unlikely,” said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday.

U.S. crude oil inventories fell by 2.42 million barrels in the week ended August 15, market sources told Reuters on Tuesday, citing American Petroleum Institute figures.

Gasoline inventories fell by 956,000 barrels, while distillate inventories rose by 535,000 barrels from last week, the sources said.

The Star