Oil prices rose early Wednesday, bouncing back after earlier falling more than $1 a barrel, as Russia's invasion of Ukraine continued to dominate volatile trade with ceasefire talks the latest market trigger.

Brent futures were up 83 cents, or 0.8%, at $100.74 a barrel by 01:20 GMT. US WTI crude was up 58 cents, or 0.6%, at $97.02 a barrel. Both contracts had previously lost more than $1, with Brent falling to $98.86 a barrel and WTI down to $94.90 a barrel.

Ukrainian President Volodymyr Zelenskiy said in a video speech released early Wednesday that Ukraine and Russia's position on peace talks sounded more realistic, but more time was needed.

Traders are waiting for more clues from the truce talks after a two-day sell-off in the oil market, but crude prices may continue to come under pressure as high inflation will eventually drag down economic growth and weaken demand, said Tina Teng.

The trading session has been volatile since Russia invaded Ukraine on February 24, with prices hitting 14-year highs on March 7, but since then Brent has fallen by nearly $40 a barrel and WTI around $34.

Oil Prices Had Weakened in the Spot Market

Prices have also come under pressure in recent days on fears of slowing Chinese demand, as the world's most populous nation and second-largest oil consumer imposed strict measures to contain the spread of COVID-19.

Meanwhile, preliminary information from the yankee fossil oil Institute showed United States of America crude inventories rose 3.8 million barrels for the week terminated March eleven.

Gasoline inventories fell by 3.8 million barrels and liquid stocks rose by 888,000 barrels, in line with the sources, WHO spoke on condition of obscurity. Official US government inventory data will be released this Wednesday.

Oil costs fell once more on weekday however are on the right track for his or her biggest weekly decline since Nov when wanting around fears of a rising Russian oil ban versus efforts to bring more provides to the market from alternative major producers.

Brent crude futures inched up eleven cents to $109.44 a barrel at 0149 GMT once dropping 1.6% within the previous session. US West Texas Intermediate (WTI) crude futures were up 46 cents, or 0.4%, at $106.48 a barrel, following Thursday's 2.5% decline.

In a volatile trading week marked by talk of an embargo on Russian oil then potential supply additions from Iran, Venezuela, and the United Arab Emirates while fighting escalates in Ukraine.

Oil Moves Due to Russia-Ukraine Tensions

Brent is on track for a weekly decline of around 7% after hitting 14 years. $139.13 high. US crude is headed for a decline of about 8% after hitting a high of $130.50.

Prices eased this week after it became clear that the European Union, which relies heavily on Russian energy, would not join the United States and Britain in banning Russian oil.

Russia, the world's second-largest exporter of crude after Saudi Arabia, exports about 3 million barrels per day of crude to European OECD countries. The oil market was unprepared for a supply shock as inventories are at multi-year lows, ANZ Research analysts said in a report.

In the near term, the supply gap is unlikely to be filled by additional output from members of the Organization of the Petroleum Exporting Countries and their allies, collectively called OPEC+, given that Russia is part of the grouping, said Commonwealth Bank analyst Vivek Dhar.

In addition, some OPEC+ producers, including Angola and Nigeria, have struggled to meet their production targets, further limiting the group's ability to offset Russian supply losses.

Commonwealth Bank expects goose to average $110 within the second and third quarters of the year however sees costs doubtless rising as high as $150 within the short term. Everything is very uncertain. It's very difficult to come out with a view, says Dhar.