Oil prices fell on Wednesday as renewed diplomatic pressure from Washington to push Ukraine toward a negotiated end to the war raised the possibility of higher Russian oil flows returning to the market. Brent settled $1.38 lower at $63.51, while WTI fell $1.30 to $59.44, with both benchmarks down 2.1%.
Sources said the U.S. has presented Kyiv with a framework that would require concessions on territory and certain weapons, a development that could reduce geopolitical risk premiums if it gains traction. Traders noted that any easing of the conflict could eventually bring sanctioned Russian barrels back into circulation, adding to concerns about a potential glut amid increasing volumes of crude in floating storage.
Market sentiment remains cautious ahead of the November 21 deadline for companies to halt dealings with Russia’s major producers under recently imposed U.S. sanctions. While U.S. officials say the measures are already tightening Moscow’s revenues and will constrain long-term export capacity, Russia maintains that production remains unaffected and that it expects to reach its OPEC+ quota in the coming months.
Losses were partially limited by U.S. data showing a larger-than-expected draw in domestic crude inventories last week, supported by higher refinery runs and exports.