West Texas Intermediate (WTI) crude extended its decline for a third straight session on Friday, trading near $58.00 per barrel during Asian hours. Oil prices weakened as easing Ukraine–Russia tensions increased the likelihood of reduced sanctions on Russian crude, a development that could lift global supply. Sentiment turned bearish this week as Washington intensified efforts to push forward a peace plan aimed at ending the three-year conflict.
Ukraine open to talks as peace blueprint gains momentum
Ukrainian President Volodymyr Zelenskyy signaled willingness to engage in peace negotiations, with a US–Russia drafted framework now under consideration.
Zelenskyy is expected to discuss the plan with US President Donald Trump in the coming days. The proposal reportedly includes territorial concessions and the potential rollback of sanctions on Russia—factors that could further pressure crude prices if supply increases.
US sanctions on Rosneft and Lukoil take effect
At the same time, new US sanctions targeting Russian oil giants Rosneft and Lukoil came into effect on Friday. The measures could leave as much as 48 million barrels of Russian crude stranded at sea. Indian refiners, which had relied heavily on discounted Russian oil, are now searching for alternative sources.
Reliance Industries has halted imports of Russian crude at its Jamnagar refining complex in Gujarat, effective November 20. The company—bound by a long-term agreement to source nearly 500,000 barrels per day from Rosneft—confirmed it will comply with sanctions while working with existing suppliers, according to Reuters.
Broader market sentiment weakens on Fed expectations, firm USD
WTI remains under pressure as broader market sentiment softens. September US labor data reinforced expectations of a Federal Reserve (Fed) rate cut in December. The CME FedWatch Tool now reflects a 36% probability of a 25-basis-point reduction, up from 30% the day before.
A stronger US Dollar (USD) is also weighing on oil prices, making crude more expensive for buyers using other currencies.
