Oil closes higher as investors assess Russia-Ukraine peace talks

Oil drilling rigs

Oil prices rose at the close of trading today, Dec. 3, as the prospects for peace talks in Ukraine were assessed after Russia said that discussions with Washington on ending the war had failed to produce a compromise.

Brent crude futures for February delivery rose 0.35%, or 22 cents, to settle at $62.67 a barrel, after rising as much as 1% earlier in the session.

US West Texas Intermediate (WTI) crude futures for January delivery also rose, gaining 0.53%, or 31 cents, to $58.95 a barrel.

The Russian government said in a statement that Moscow and Washington had failed to reach a compromise during a lengthy meeting between President Vladimir Putin and envoys of his US counterpart, Donald Trump, regarding a peace plan for Ukraine.

This reduced the likelihood of Western countries easing sanctions on Russia's energy sector imposed over the war.

Crude prices were also pressured by data from the US Energy Information Administration showing that US crude inventories rose by 600,000 barrels last week, contrary to expectations of a 1.7 million barrel decline.