(RTTNews) – Crude oil fell on Thursday, continuing yesterday’s decline, as investors weighed reports of new efforts by the US to end the Russia-Ukraine war against the after-effects of US sanctions on Russian oil as a US deadline expires in a few hours.
WTI crude oil for December delivery was last seen trading at $59.18 per barrel, down $0.27 (or 0.44%).
Last month, the US imposed sanctions on Russian oil exports targeting two of its major corporations, Rosneft and Lukoil. The restrictions are set to come into effect tomorrow (November 21).
China, India and Türkiye, the three major buyers of Russian oil, have already turned away from Russia and are looking for sellers elsewhere.
Despite US sanctions impacting its revenues, Russia has not stopped its aggression against Ukraine. Russian forces attacked the city of Ternopil in western Ukraine, injuring more than 100 people.
For its part, Ukraine’s military attacked (for the second time) Russia’s largest refinery in the city of Ryazan, south of Moscow, setting it on fire.
US President Donald Trump has quietly approved starting talks with Russia on a 28-point proposal aimed at ending the Russia-Ukraine war, according to a report by NBC News. So far, there have been no reports of Ukraine’s direct involvement, although Ukrainian officials have acknowledged receiving “hints” on peace talks.
Mirroring the Gaza peace plan in the Middle East, Trump has attempted to end the four-year-long Russia-Ukraine war.
An end to the Russia-Ukraine war could allow the free flow of Russian oil into the markets.
Yesterday, the US Energy Information Administration reported that US crude oil inventories fell by 3.426 million barrels for the week ending November 14.
Meanwhile, for the same period, gasoline and distillate inventories increased by 2.3 million barrels and 0.2 million barrels, respectively, although heating oil inventories declined by 0.5 million barrels.
For 2026, the International Energy Agency has warned that the oil glut could be worse than expected, and a new oil market outlook from Goldman Sachs estimates a global surplus of about 2 million barrels per day.
Additionally, reports have emerged that China is increasing oil imports to counter any future supply disruptions, with surplus crude reaching 690,000 barrels per day in October.
As the long-term demand outlook remains weak and the market is still grappling with high inventories, oil prices are undergoing some downward pressure.
Minutes of the US Federal Reserve meeting in October were released yesterday, revealing that officials were divided on rate cuts. Trump has openly advocated a low-interest regime.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. Reflect the views of.
