Oil Edges Higher With Ukraine Talks And China’s Pledge In Focus

Oil ticked higher as US-led talks to end the war in Ukraine failed to yield a breakthrough, and China vowed to support growth next year.

Brent rose above $61 a barrel, while West Texas Intermediate was near $57. While the US stepped up a push to end the war, sticking points remain, highlighting the difficulty in reaching a deal. President Donald Trump said he made “a lot of progress” in talks on Sunday with Ukrainian counterpart Volodymyr Zelenskiy at Mar-a-Lago. More meetings are planned.

Oil is still on track for a fifth monthly drop in December, which would be the longest losing streak in more than two years. Prices have been dragged lower by concerns about a global glut following supply increases from members of the OPEC+ cartel as well as nations outside the group. Geopolitical tensions from Venezuela to Nigeria have helped stem the slump in recent weeks.

On Ukraine, “there's been no breakthrough,” which lent some support to prices, said Gao Mingyu, chief energy analyst at China Futures Co., citing issues including the fate of the Donbas region that's partially occupied by Russian forces. “It feels like there's still back-and-forth ahead,” she added.

China, meanwhile, pledged to broaden its fiscal spending base in 2026, according to a statement from the Ministry of Finance on Sunday, signaling government support to drive growth. The world's top crude importer has faced headwinds amid a property downturn and external pressures, including trade frictions with the US. At the same time, Beijing's robust stockpiling of crude is expected to continue, helping to absorb the surplus.