By Gina Lee

Investing.com – Oil was up on Wednesday morning in Asia, reversing the previous session’s losses as hopes rose for progress in between Russia and Ukraine. A stark reminder was provided by the latest U.S. crude-oil supply data, which also highlighted the shortage in the market.

The session ended at 1:20 ET (5:00 AM GMT) and had gained 0.533% to $108.28. This reverses the loss of 2% from the previous session. rose 0.67% to $104.94, erasing Tuesday’s 1.6% drop on Tuesday.

Investors’ focus was on supply tightness, with Tuesday’s showing a draw of 3 million for the week ended Mar. 25. Investing.com had made forecasts for a draw in excess of 1.558million barrels. However, a draw of 4.28million barrels was reported during the past week.

Investors are waiting for, which is due late in the afternoon.

The previous session saw the market fall by 2%. Russia pledged to reduce military operations in Kyiv, and other cities during Tuesday’s face-to-face talks. Although this move occurs more than a year after the Russian invasion in Ukraine on February 24, reports continue of additional attacks.

The Ukrainian President Volodymyr Zeleskiy said that there are promising signs coming out of the negotiations, but was still looking for concrete results. In a late-night speech, he stated that although the signs received from the talks can be positive, it does not replace the Russian shell explosions.

“The price recovery suggests the oil market, at least, has a strong degree of skepticism about any ‘progress’,” Commonwealth Bank analyst Tobin Gorey said in a note.

Investors are also looking to the Organization of the Petroleum Exporting Countries and allies (OPEC+)’s next meeting, scheduled for Thursday. According to Reuters sources, major oil producers will not increase their output beyond the agreed 400,000 barrels per hour level. This is contributing to a tight market.

Saudi Arabia and United Arab Emirates are key OPEC+ member countries. They said that they would not take any action against Russia in response to its invasion of Ukraine. They added that OPEC+ would only help stabilize the market, and not get involved in politics.