Oil prices held steady on Wednesday as global markets turned their attention to the next phase of diplomatic engagement between Russia and Ukraine with investors assessing whether ongoing negotiations could shift the geopolitical landscape and ease supply concerns.
Brent crude oil, against which Nigerian crude oil is priced, hovered around recent levels after a volatile session earlier in the week, while West Texas Intermediate (WTI) traded within a narrow range as traders paused to evaluate potential outcomes of renewed peace discussions.
Market participants say the absence of clear direction from the negotiation table has kept price movements muted, with investors choosing caution over speculation.
Analysts note that despite recent declines, overall positioning in the energy market remains sensitive to headlines emerging from the peace efforts.
A breakthrough that reduces geopolitical tension could soften supply risk premiums, while any setback may prompt a rebound as traders price in renewed disruptions.
Beyond geopolitics, the market is also tracking broader macroeconomic drivers, including expectations of monetary policy shifts in major economies.
Sentiment in energy markets has been closely tied to projections around global demand, with traders watching inflation data, interest-rate guidance and industrial activity indicators for cues on consumption trends.
Refiners and downstream players remain cautious, with some adopting a wait-and-see approach ahead of potential policy signals.
Market observers say that even small changes in diplomatic tone could create short-term price swings, given the sensitivity of supply routes and the complex trade flows linked to the conflict.
For now, crude prices continue to reflect a balance between geopolitical uncertainty and macroeconomic expectations.
Investors remain focused on whether upcoming peace talks will provide clearer direction for the oil market or prolong the recent period of range-bound trading.