Oil prices settle up in low volume on US holiday; Russia-Ukraine talks in focus

Oil prices rose on Thursday as market participants weighed the likelihood that talks to end the war in Ukraine will yield an agreement, with trading volume thin due to the Thanksgiving holiday in the U.S.

Brent crude futures settled up 21 cents, or 0.2%, at $63.34 a barrel. U.S. West Texas Intermediate crude futures were up 45 cents, or 0.8%, at $59.10 a barrel by 1:46 p.m. ET (1846 GMT).

The market is swinging between hope and skepticism over renewed peace efforts in Ukraine, SEB commodities analyst Ole Hvalbye said.

U.S. and Ukrainian delegations are to meet this week to work out a formula discussed at talks in Geneva to bring peace and provide security guarantees for Kyiv, Ukrainian President Volodymyr Zelenskiy said.

The two sides have been trying to narrow gaps over President Donald Trump's plan to end Europe's deadliest conflict since World War Two. Kyiv remains wary of accepting a deal largely on Russian terms, including territorial concessions.

Russian President Vladimir Putin said the outlines of a draft peace plan discussed by the U.S. and Ukraine could become the basis of agreements to end the war. Putin also said that once Ukrainian troops withdraw from key areas, the fighting will stop, but Russia will achieve its objectives by force if that does not happen.