Oil prices drifted lower on Thursday as the Trump administration intensified its push for Ukraine to consider a U.S.-drafted peace framework with Russia, raising the prospect of reduced geopolitical risk and eventually higher Russian oil flows. Brent slipped 13 cents to $63.38, while WTI fell 30 cents to $59.14.
Prices had been higher earlier in the session after government data showed a larger-than-expected draw in U.S. crude stocks, driven by stronger refinery runs and healthy export demand. Crude inventories fell 3.4 million barrels last week, though gasoline and distillate inventories rose for the first time in more than a month, hinting at easing consumption.
Traders focused heavily on Washington’s renewed diplomatic push, which includes proposed concessions on territory and military limits for Ukraine—terms Kyiv has previously rejected. President Zelenskiy said Thursday he would review the proposal and continue discussions with the U.S., introducing uncertainty over whether upcoming sanctions deadlines might be delayed if talks gain traction.
Sanctions restricting dealings with Russia’s major oil producers are scheduled to take effect Friday, with an additional deadline in December for Lukoil to divest its foreign assets. The market remains sensitive to how these measures could intersect with any political progress on the conflict.