Crude oil prices fell, with the us energy inventory data being bearish for oil prices, halting the two-day increase fueled by escalating tensions.

WTI crude oil futures dropped 0.7%, with a settlement price below $69 per barrel. Previously, oil prices had risen as Ukrainian armed forces launched British-made cruise missiles at military targets within Russia for the first time, while Russia intensified its nuclear retaliation threats. After the US Energy Information Administration (EIA) announced an increase of 0.545 million barrels in us crude oil inventories and a 2.05 million barrel increase in gasoline inventories last week, the upward momentum in oil prices lost steam.

Nevertheless, the geopolitical situation remains noteworthy. Russia indicated readiness to discuss the possibility of a ceasefire in Ukraine with us president-elect Trump, sparking speculation about how the Russia-Ukraine conflict will ultimately end.

"The significance of the Russia-Ukraine conflict to the investment market has once again become apparent," said John Evans, an analyst at PVM Oil Associates. "The oil market will once again be caught in a new tug-of-war between geopolitics and supply."

The expiration of the WTI December contract on Wednesday also caused volatility in trading, with WTI January crude oil futures falling 0.7%, settling at $68.75 per barrel. The December crude oil futures that expired on Wednesday settled at $68.87 per barrel, and Brent January crude oil futures also fell 0.7%, settling at $72.81 per barrel.