West Texas Intermediate (WTI) crude continues to edge lower for the second straight session, trading near $57.80 per barrel during Wednesday’s European session. The commodity slipped 1.70% in the previous session as improving prospects of a Ukraine–Russia peace agreement dampened market sentiment.
Ukrainian President Volodymyr Zelenskiy signaled his willingness to advance a US-supported plan to end the conflict and expressed readiness to address the remaining sensitive issues directly with US President Donald Trump and key European partners.
A potential peace breakthrough could lead to the easing of Western sanctions on Russia, whose major oil companies have faced heavy restrictions. Any relaxation of sanctions would likely boost global supply at a time when production already outpaces demand, raising renewed concerns about oversupply.
Oil prices may stay under pressure as supply risks grow. According to Reuters, Commerzbank noted that sanctions on Russian energy giants Rosneft and Lukoil—along with curbs on exports of products refined from Russian crude into Europe—have forced some Indian refiners to cut their purchases of Russian oil. As a result, Russian exports have declined, increasing the volume of crude sitting in floating storage. These barrels could quickly re-enter the market if a peace deal leads to sanctions being removed.
Meanwhile, data from the American Petroleum Institute (API) showed that US crude inventories fell by 1.9 million barrels for the week ending November 21, 2025, reversing a 4.4 million-barrel build the week prior. This marks the first draw after three consecutive weekly increases.
