Brent crude rebounded from a 16-month low after Russia and Ukraine agreed on steps toward a cease-fire in the five-month conflict.
Brent rose as Russian President Vladimir Putin outlined a peace plan for Ukraine today with his Ukrainian counterpart Petro Poroshenko. West Texas Intermediate rose on expectations that supplies dropped last week. Oil tumbled yesterday on concern a weakening European economy will curb demand.
“Oil is recovering a lot of its losses yesterday based on news coming out of Ukraine about a potential path leading to a cease-fire,” said Andy Lipow, president of Lipow Oil Associates LLC, an energy consulting firm in Houston.