Oil prices extend gains with falling supplies in focus | Reuters

Oil prices extend gains with falling supplies in focus | Reuters

Oil prices extended gains on Wednesday after Moscow said peace talks with Ukraine had reached a dead end, heightening concerns of supply disruption, while weak economic data from China and Japan limited the rise.

Brent crude was up $1.62, or 1.6%, to $106.26 a barrel by 1418 GMT and U.S. West Texas Intermediate (WTI) crude futures gained $1.25, or 1.2%, to $101.85. Both benchmarks climbed more than 6% on Tuesday.

"The downside for oil prices is limited," said OANDA senior market analyst Jeffrey Halley.

The Russian comments on peace talks and U.S. President Joe Biden accusing Russia of genocide reinforced the view "the Ukraine-Russia situation will not be de-escalating any time soon," Halley said.