WASHINGTON (dpa-AFX) - Crude oil edged lower on Thursday, extending yesterday's decline, as investors assessed reports of renewed efforts by the U.S. to end the Russia-Ukraine war against the after-effects of U.S. sanctions on Russian oil as the U.S. deadline expires in a few hours.
WTI Crude Oil for December delivery was last seen trading down by $0.27 (or 0.44%) at $59.18 per barrel.
Last month, the U.S. imposed sanctions on Russian oil exports targeting two of its major corporations, Rosneft and Lukoil. The sanctions are set to take effect beginning tomorrow (November 21).
China, India, and Turkey, three major oil purchasers of Russian oil, have already turned away from Russia, seeking sellers elsewhere.
Despite the U.S. sanctions denting its revenue, Russia has not halted its aggression against Ukraine. Russian forces attacked the western Ukrainian city of Ternopil, injuring more than 100.
For its part, Ukraine's military attacked (for the second time) the largest refinery in Russia in the city of Ryazan, south of Moscow, setting it on fire.
According to a report by NBC News, U.S. President Donald Trump has given quiet approval to initiate talks with Russia on a 28-point proposal aimed at ending the Russia-Ukraine war. So far, there are no reports of Ukraine's direct involvement though Ukrainian officials acknowledged receiving 'signals' on peace talks.
Mirroring the Gaza Peace Plan in the Middle East, Trump has endeavored to halt the four-year-long Russia-Ukraine war.
An end to Russia-Ukraine war could permit the free flow of Russian oil into the markets.
Yesterday, the U.S. Energy Information Administration reported that crude oil inventories in the U.S. slid by 3.426 million barrels for the week ending November 14.
Meanwhile, for the same period, gasoline and distillate inventories rose by 2.3 million barrels and 0.2 million barrels, respectively, though heating oil inventories dropped 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 projected approximately a 2 million barrels per day global surplus.
Further, reports have emerged that China is increasing oil imports, with surplus crude reaching 690,000 barrels per day in October to counter any future supply disruption.
As the long-term demand outlook remains weak with markets still grappling with high inventories, oil prices are undergoing some downward pressure.
Minutes from the U.S. Federal Reserve's meeting in October were released yesterday, revealing that the officials were divided over rate cuts. Trump has openly advocated for a low-interest regime.
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