Oil prices held onto their gains for the second day in a row as investors kept a close eye on ceasefire talks in Ukraine, even while signs of extra supply continue to build in the market.
Brent crude stayed above $63 a barrel after rising 0.9% the day before, and West Texas Intermediate moved closer to $60.
Ukrainian negotiators are getting ready for a new round of talks in Florida. At the same time, Russian President Vladimir Putin said parts of a U.S.-backed peace proposal are “unacceptable,” adding uncertainty to the process.
Markets are watching these talks carefully. Any progress could eventually lead to sanctions on Russia being lifted, which would open the door for more Russian oil exports. But a full agreement still seems far off.
In the meantime, the growing oversupply in the global oil market is putting pressure on prices. Even with recent gains, oil is still on track for a yearly decline as rising supply continues to outweigh demand.
