Oil prices rose in early Asian trade, recovering from a 2% drop. Markets are balancing demand softness with supply-risk developments, including looming sanctions on Russian oil. Brent futures climbed 0.25% to $63.67/barrel, while West Texas Intermediate rose 0.29% to $59.42/barrel.

The rebound followed a plunge after reports of renewed diplomatic efforts to end Russia’s war in Ukraine, increasing the risk of Russian supply coming back online. Traders are focused on the U.S. deadline to wind down operations with major Russian oil producers by November 21, potentially taking more oil offline.

Despite the rebound, the demand outlook remains weak due to high inventories and global growth concerns. Supply side functions as a partial offset, but unless demand strengthens, upside for oil prices may be limited. Traders are looking for meaningful demand-side developments to spark a longer-term rally.

Read more at Yahoo Finance: Oil Prices Edge Higher as Traders Brace for Russian Sanctions Deadline