West Texas Intermediate (WTI) crude is trading near $58.70 in Thursday’s Asian session, extending its pullback as diplomatic developments toward a potential Russia-Ukraine peace agreement weigh on prices. Traders now look ahead to the US Initial Jobless Claims report for additional direction later in the day.
According to reports from the Telegraph, US President Donald Trump has given Ukrainian President Volodymyr Zelensky until Christmas to accept a proposed deal aimed at ending the conflict with Russia.
Zelensky indicated that a revised peace plan is nearing completion and will soon be submitted to the US, hinting at possible progress as Washington increases pressure on Kyiv to settle the dispute. Analysts note that any resolution to the conflict would reduce risks to regional energy infrastructure and add supply-side stability – factors that may keep WTI under near-term selling pressure.
Fed rate cut offers support but geopolitical developments dominate
The Federal Reserve delivered its third consecutive rate cut on Wednesday, reducing the federal funds rate by 25 bps to a range of 3.5%–3.75%. Lower borrowing costs can stimulate economic activity and bolster oil demand, providing a degree of support for crude. However, geopolitical headlines remain the primary driver behind WTI’s current weakness.
EIA data shows stronger-than-expected inventory draw
Fresh data from the Energy Information Administration revealed that US crude oil inventories fell by 1.812 million barrels in the week ending December 5, compared with an increase of 574,000 barrels the previous week. The market had expected a draw of just 1.2 million barrels. The larger-than-anticipated decline may help cushion the downside in WTI, though sentiment remains tied to developments in the Russia-Ukraine negotiations.
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