Oil prices climbed back above $100 per barrel on Wednesday as Russian forces pounded Ukrainian cities and edged closer to the capital, Kyiv. Demand concerns also eased somewhat after China pledged support for its slowing economy.
Benchmark Brent crude futures were up 0.3 percent at $100.21, after having risen more than 2 percent earlier.
U.S. West Texas Intermediate (WTI) crude futures were little changed at $96.36, giving up early gains after the International Energy Agency (IEA) in a monthly report cut its oil demand forecast for 2022.
Ukrainian President said that the positions of Ukraine and Russia at peace talks were sounding more realistic but more time was needed.
Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskiy, tweeted that the negotiations are “difficult” but there is room for compromise.
However, Russian President Vladimir Putin accused Ukraine’s leadership of not being “serious” about resolving the conflict.
The IEA lowered its forecast for world oil demand for the second to fourth quarters of 2022 by 1.3 million bpd noting rising commodity prices and sanctions on Russia “are expected to appreciably depress global economic growth” and impact inflation.