Oil holds at two-month low on rising supply concerns

LONDON, Feb 26 (Reuters): Oil prices held at two-month lows on Wednesday as a potential peace deal between Russia and Ukraine continued to weigh on prices while lower US crude stockpiles provided some support.

Brent crude was down 19 cents at $72.83 a barrel by 1256 GMT and US West Texas Intermediate crude oil futures fell by 13 cents to $68.80.

Prospects for a peace deal between Russia and Ukraine are improving, ING commodities strategists said in a note on Wednesday, adding that the market was also watching for potential implications of a minerals deal between the US and Ukraine.

Downside risks on oil prices increased because of US President Donald Trump's policies, such as initiatives to support higher oil exports by Iraq, said Saxo Bank analyst Ole Hansen.

Trump's tariff policies could also trigger a trade war and curb economic growth, Hansen added.