Oil prices rose on Thursday as market participants weighed the likelihood that talks to end the war in Ukraine will yield an agreement, with trading volume thin due to the Thanksgiving holiday in the U.S.
Brent crude futures settled up 21 cents, or 0.2 per cent, at $63.34 a barrel. U.S. West Texas Intermediate crude futures were up 45 cents, or 0.8 per cent, at $59.10 a barrel by 1:46 p.m. ET (1846 GMT).
The market is swinging between hope and skepticism over renewed peace efforts in Ukraine, SEB commodities analyst Ole Hvalbye said.
U.S. and Ukrainian delegations are to meet this week to work out a formula discussed at talks in Geneva to bring peace and provide security guarantees for Kyiv, Ukrainian President Volodymyr Zelenskiy said.
Eight OPEC+ countries, which have been gradually raising production in 2025, are expected to keep their policy to pause hikes in the first quarter of 2026 unchanged, the two delegates said.
Crude prices were also supported by rising expectations for a U.S. Federal Reserve interest rate cut in December. A lower rate typically stimulates economic growth and bolsters demand for oil.
