- WTI price declines as easing Ukraine–Russia tensions raise the possibility of reduced sanctions on Russian Oil.
- President Zelenskyy signals openness to peace talks, with proposals including territorial concessions and possible sanction relief.
- US sanctions on Rosneft and Lukoil take effect Friday, potentially leaving up to 48 million barrels stranded at sea.
West Texas Intermediate (WTI) Oil price extends its losses for the third consecutive session, trading around $ 58.00 per barrel during the Asian hours on Friday. Crude Oil prices slip as easing Ukraine–Russia tensions raise the possibility of reduced sanctions on Russian Oil, potentially boosting global supply. Sentiment turned bearish this week as Washington pushed for a peace plan to end the three-year conflict.
Ukrainian President Volodymyr Zelenskyy has indicated openness to peace talks. The blueprint, drafted by the US and Russia, is expected to be explored further when Zelenskyy speaks with US President Donald Trump in the coming days. The plan reportedly includes Ukrainian territorial concessions and the potential lifting of sanctions.
Meanwhile, US sanctions on Russian Rosneft and Lukoil take effect on Friday. The measures against two major Oil firms could leave up to 48 million barrels of crude stranded at sea. Indian refiners, previously dependent on discounted Russian Oil, are now searching for alternative suppliers.
Reliance Industries has halted imports of Russian crude at its Jamnagar refining complex in Gujarat, effective November 20, the company spokesperson said on Thursday. The Indian conglomerate has a long-term deal to source nearly 500,000 barrels per day of crude from Russia’s Rosneft, stating it will adhere to sanctions on Moscow while continuing to work with its current Oil suppliers, according to Reuters.
Oil prices remain under pressure as market sentiment softens, with September jobs data reinforcing expectations of a Fed rate cut in December. The CME FedWatch Tool now shows a 36% probability of a 25-basis-point cut at the December meeting, up from 30% a day earlier. A firmer US Dollar (USD) is also weighing on crude, making it more expensive for buyers using other currencies.
