West Texas Intermediate (WTI) crude is trading firmly in positive territory for a third straight session, hovering around $59.00 per barrel during Friday’s Asian trade. Oil prices are edging higher as traders watch for developments in the ongoing Russia–Ukraine peace discussions.
Geopolitical developments in focus
Russian President Vladimir Putin signaled that proposals put forward by US President Donald Trump could help shape a future peace framework, adding that Moscow is prepared for continued negotiations. A breakthrough could eventually lead to the easing of sanctions on Russian crude and unlock restricted supply.
However, skepticism remains high, as any agreement would likely take time to finalize, and even with a deal, additional shipments wouldn’t immediately hit global markets.
Ukrainian President Volodymyr Zelenskiy said that Ukrainian and US officials will meet this week to refine the Geneva framework aimed at securing peace and establishing long-term security guarantees for Kyiv.
OPEC+ meeting in spotlight
Oil markets are also looking ahead to Sunday’s virtual OPEC+ gathering. The group is widely expected to maintain its plan to pause output increases in early 2026, although attention may turn to a broader reassessment of production capacity and quotas among member states.
Fed rate cut expectations add support
WTI is finding further support from rising expectations of a Federal Reserve rate cut in December, which could boost economic activity and strengthen oil demand. According to the CME FedWatch Tool, markets now assign more than an 87% probability to a 25 bps cut next month – up sharply from 39% a week earlier. Traders also see scope for three additional cuts by the end of 2026, amid reports that White House National Economic Council Director Kevin Hassett is the leading candidate to become the next Fed Chair.
