By Rong Wei Neo and Grant Smith

(Bloomberg) — Oil rose after an industry report signaled that US crude stockpiles declined last week, while traders assessed negotiations to end Russia’s war against Ukraine.

Brent futures (BZ=F) gained as much as 1.4% to trade above $66 a barrel in London, clawing back Tuesday’s losses. The industry-funded American Petroleum Institute reported crude inventories fell by 2.4 million barrels last week, according to people familiar with the figures. Government data is due later Wednesday.

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Investors are watching on progress toward a ceasefire between Russia and Ukraine following a series of high-level talks brokered by President Donald Trump. Any eventual peace deal could lead to fewer restrictions on Russia’s crude exports, although Moscow has largely kept its oil flowing despite an array of sanctions.

A lot of that crude has been shipped to India since the war, drawing criticism from the Trump administration. On Tuesday, US Treasury Secretary Scott Bessent claimed on CNBC that some of the “richest families in India” benefited from purchases of Russian oil, reiterating plans to boost tariffs on the South Asian nation.

Bessent said on Fox News that the US is “very happy” with its tariff arrangement with China, a sign that Washington will likely maintain status quo before a trade truce expires in November. Chinese refiners have also been big buyers of Russia oil, but Beijing hasn’t faced the same criticism as India.

The longer-term outlook for the oil market looks bearish, with expectations for a glut later in 2025 as OPEC+ returns barrels and as Trump’s trade policies spark concerns about demand. Futures are down more than 10% this year.

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