Oil prices rose 2% due to a larger-than-expected drop in U.S. crude inventories amid ongoing Ukraine war talks. Brent crude settled at $66.84 a barrel, while WTI crude settled at $63.21. The U.S. EIA reported a 6.0 million barrel drawdown, surpassing analyst forecasts and API figures.

Crude prices fell over 1% on Tuesday on hopes of a Russia-Ukraine war resolution. President Trump acknowledged Putin’s reluctance to make a deal, impacting oil balances. Russia, the second-largest oil producer in 2024, could increase exports with eased sanctions. Trump ruled out U.S. ground troops in Ukraine but hinted at air support.

Russia warned against resolving Ukraine security issues without its involvement, signaling possible tensions with the West. Despite U.S. warnings, Russia plans to continue oil supplies to India. Trump imposed a 25% tariff on Indian goods for purchasing Russian oil. Indian refiners resumed Russian oil purchases for September and October.

Russian forces advanced in Ukraine’s Dnipropetrovsk region, raising doubts about a quick resolution to the conflict. Iran believes it’s not yet time for nuclear talks with the U.S. Saudi Arabia’s crude exports dropped to a three-month low in June. Norway’s oil and gas production exceeded forecasts by 3.9% in July.

Read more at Yahoo Finance: Oil prices climb 2% on drop in US crude inventories as investors focus on Ukraine peace push