While the United States is yet to verify the pullback of Russian troops, Brent traded at $93.19 a barrel.
Brent traded down 10%, sliding 3.3% overnight after the Russian-Ukraine tensions cooled down.
Oil prices steadied on Wednesday
On Tuesday, Moscow announced a partial pullback of troops from Ukraine’s borders. However, U.S. President Joe Biden says that nearly 150,000 Russian troops stand near the borders.
However, Chief Investment Officer, Probis Group, Jonathan Barrat, says, “Technically we could see prices heading back to $90 a barrel on profit-taking, but they will trend higher towards $100 as the economy is getting back on track and more demand is coming through in a tight market.”
Even though the Ukraine crisis has seethed, high inflation is here to stay for much of this year.
The U.S. Labor Department stated that producer prices soared the highest in eight months in January.
Furthermore, Investors stand by for the weekly U.S. oil inventories data from the Energy Information Administration due on Wednesday at 10:30 a.m. (1530 GMT).
Senior Market Analyst with brokerage OANDA, Edward Moya, said, “Talks between German Chancellor Scholz and President Putin supported market expectations that an imminent Russian invasion seems less likely.”
Furthermore, investors estimated a sharp balance between tight global supplies and recovering fuel demand.
Moreover, U.S. West Texas Intermediate (WTI) crude stood steady and last traded at $92.13 after the contract seized Tuesday’s sessions down 3.6%.
However, analysts predict that oil prices may soar to $100 a barrel beyond the Ukraine tension as the market remains tight.
As per market sources on Tuesday, data from the American Petroleum Institute reported a drop in gasoline, crude and distillate stocks last week.
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