• WTI price declined amid rising prospects for a Ukraine-Russia peace agreement.
• Ukrainian President Zelenskiy signaled his readiness to advance a US-backed plan to bring the war to an end.
• API reported weekly US crude stocks fell 1.9 million barrels, the first draw after three weekly builds.

West Texas Intermediate (WTI) Oil price extends its losses for the second successive session, trading around $57.80 per barrel during the European hours on Wednesday. WTI price fell 1.70% in the previous session as prospects for a Ukraine-Russia peace agreement improved.

Ukrainian President Volodymyr Zelenskiy signaled readiness to move forward with a US-backed plan to end the war and said he was prepared to discuss remaining contentious issues with US President Donald Trump, alongside Europe’s key allies.

A potential peace agreement could pave the way for easing Western sanctions on Russia, whose major Oil producers have been heavily restricted. This would likely boost supply and intensify concerns about oversupply at a time when global output is already exceeding demand.

Oil prices may remain under pressure as oversupply risks grow. According to Reuters, Commerzbank pointed out that sanctions on Russian Oil majors Rosneft and Lukoil, along with restrictions on selling products refined from Russian crude into Europe, have led some Indian refiners to reduce their intake of Russian Oil. This has pushed Russian exports lower and increased the volume of crude held in floating storage. These barrels could swiftly return to the market if a peace agreement results in sanctions on Rosneft and Lukoil being lifted.

The American Petroleum Institute (API) reported on Tuesday that US Weekly Crude Oil Stock fell by 1.9 million barrels for the week ending November 21, 2025, after a 4.4-million-barrel build the week before. This marks the first draw after three consecutive weekly increases.