The oil market depreciated on Thursday as the administration of US President Donald Trump pushed for Ukraine’s acceptance of a peace agreement with Russia to end a war that has gone on for more than three years.
Brent crude futures settled at $63.38 a barrel after shedding 13 cents or 0.2 per cent, and the US West Texas Intermediate (WTI) crude futures finished at $59.14 a barrel after it lost 30 cents or 0.5 per cent.
The US and Russia have reportedly drafted a plan to end the war, which includes Ukraine conceding territory. Reports of the plan, said to be devised by President Trump’s envoy Steve Witkoff and Russian special envoy Kirill Dmitriev, have not been either confirmed or denied by both nations.
The peace proposal includes concessions of Ukrainian territory to Russia and reductions in Ukraine’s armed forces, both of which Ukraine’s President Volodymyr Zelenskiy has previously rejected. However, on Thursday, Mr Zelenskiy said he would look over the proposal and confer with the US about the peace plan.
In addition, no foreign troops would be allowed on Ukrainian soil, and Ukraine would no longer receive long-range weaponry.
The proposals largely track with the demands Russia has made since the beginning of this year, when Mr Trump moved to open up direct negotiations with President Vladimir Putin over the Ukraine war.
Also, US Secretary of State Marco Rubio wrote on X on Thursday that ending a complex and deadly war such as the one in Ukraine requires an extensive exchange of serious and realistic ideas.
US sanctions on trading with Russian oil companies Rosneft and Lukoil come into effect on Friday, while Lukoil has until December 13 to sell its sprawling international portfolio.
Crude inventories fell by 3.4 million barrels to 424.2 million in the week ended November 14, the US Energy Information Administration said. However, analysts also noted that US gasoline (petrol) and distillate stockpiles increased for the first time in more than a month, suggesting slowing consumption.