By Gina Lee
Investing.com – Oil was up on Wednesday morning in Asia, clawing back some earlier losses after falling more than $1 a barrel. The conflict in Ukraine continues to contribute to volatility, with ceasefire talks between Russia and Ukraine continuing later in the day.
Brent oil futures jumped 1% to $100.91 by 12:27 PM ET (4:27 AM GMT) and WTI futures rose 0.62% to $97.04. Both Brent and WTI futures fell by more than $1 earlier in the session, with Brent futures falling to $98.86 a barrel and WTI easing to $94.90 a barrel.
Ukrainian President Volodymyr Zelenskiy said earlier in the day that the positions of Ukraine and Russia at peace talks were sounding more realistic, but more time was needed.
"Traders are awaiting more clues from ceasefire talks after a two-day selloff in the oil markets, but the crude prices may continue being under pressure as high inflation will eventually drag on economic growth and weakens demands," CMC Markets analyst Tina Teng told Reuters.
Oil closed below the $100 mark on Tuesday for the first time since late February 2022. The market has been volatile since the Russian invasion of Ukraine on Feb. 24, with the black liquid hitting 14-year highs on Mar. 7. However, Brent futures have fallen almost $40 a barrel, and WTI futures about $34 since then.
The latest COVID-19 outbreak in China is also triggering concerns of slower fuel demand in the country. The second-largest consumer has already imposed lockdowns in areas such as Shenzhen and Jilin province to curb the spread of the outbreak.
Tuesday’s U.S. crude oil supply data from the American Petroleum Institute showed a build of 3.754 million barrels for the week ended Mar. 11. Forecasts prepared by Investing.com predicted a 1.867-million-barrel draw, while a 2.811-million-barrel build was reported during the previous week.
Investors now await crude oil supply data from the U.S. Energy Information Administration, due later in the day.