Oil prices edged higher on Thursday, recovering from losses in the previous session, as markets assessed the latest US proposals to end the war in Ukraine and prepared for a US deadline to cease operations with two major Russian oil firms.
Brent crude futures climbed 21 cents, or 0.33%, to US$63.72 (RM265.07) a barrel at 0142 GMT, while US West Texas Intermediate crude futures rose 24 cents, or 0.40%, to US$59.68.
Both benchmarks rebounded after falling nearly 2% during Wednesday's session. The gains followed a Reuters report that the US had signalled to Ukraine to accept a US-drafted framework to end the war with Russia by giving up territory and some weapons, citing two sources familiar with the matter.
As part of US' efforts to end the protracted conflict, Washington has imposed sanctions on Rosneft and Lukoil, Russia's two biggest oil producers and exporters, with a deadline to wind down operations expiring on Nov 21.
Rosneft has reduced its stake in the Kurdistan Pipeline Company, Iraqi Kurdistan's main oil pipeline and a major oil exporter, to less than 50%, to protect the oil-exporting subsidiary from US sanctions.
"We hold a bullish bias in crude oil, as long as it remains above the year-to-date low of around US$55.00," Tony Sycamore, market analyst at IG, said in a note.
Source: theedgemalaysia