Oil Prices Edge Higher as Markets Weigh Ukraine Peace Talks and U.S. Refinery Setback

Crude prices ticked upward on Tuesday as investors balanced geopolitical uncertainty in Eastern Europe with fresh supply disruptions in the United States.

Brent crude futures rose $0.50 to $66.29 per barrel, while WTI September contracts settled at $62.80, supported by expectations that ongoing sanctions on Russian exports will continue to tighten global supply.

The move follows Monday’s decline, when optimism around potential peace negotiations between Russia and Ukraine briefly pressured prices. While U.S. President Donald Trump has floated the possibility of hosting a three-way summit with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy, Moscow has yet to confirm participation. Traders remain cautious, with no clear timeline for progress.

Adding to market volatility, BP’s Whiting refinery in Indiana — one of the largest in the U.S. Midwest — was forced to shut down sections of its operations after heavy flooding. The outage threatens to dent regional crude demand in the short term.

Meanwhile, U.S. government data showed a 2.42 million-barrel draw in crude inventories, alongside a decline in gasoline stockpiles and a modest rise in distillates, signaling continued strength in underlying fuel demand.