Oil prices mixed as investors weigh Middle East escalation, chance of Russia-Ukraine peace deal

Comments from Russian President Vladimir Putin indicating openness to peace negotiations with Ukraine could help ease concerns about Russian fuel supply disruptions if attacks on refineries decline and production normalizes, a factor pressuring prices on Thursday, said Phil Flynn of Price Futures Group.

Putin said on Thursday there was a chance of reaching an agreement to end the war in Ukraine. Speaking at an economic forum in Russia's far east, he said a number of countries including the U.S. and China were ready to support a peace settlement.

FEWER VESSELS TRANSIT STRAIT

Six commodity vessels transited the Strait of Hormuz on Wednesday, down from 11 a day earlier and well below the 10-day average of around 13, preliminary shipping data showed on Thursday.

"The oil market remains tight, with oil inventories still declining globally translating into higher prices," said UBS energy analyst Giovanni Staunovo.