November 22, 2025
The decline in crude oil prices has continued as signs of diplomatic engagement between the US and Russia suppressed supply fears, while cautious US Federal Reserve (Fed) signals and weakening US demand compound the pressure.
International benchmark Brent crude traded 3.8% down at $61.47 per barrel, from last Friday’s close of $63.90. while US benchmark West Texas Intermediate (WTI) was at $57.48 per barrel, compared with $59.76 last week falling at the same margin of 3.8%.
Diplomatic contacts between the US and Russia over a potential resolution to the Ukraine crisis unwound part of the geopolitical risk premium, caused crude oil prices to open the week on a negative note.
Kremlin foreign policy aide Yuri Ushakov said Washington and Moscow are maintaining dialogue based on understandings reached at the Alaska summit, adding that these arrangements “provide a strong foundation for moving toward a peaceful settlement.”
READ MORE; Dimmed Hope For U.S Fed Rate Cut Trigger Crude Oil Prices Fall
Despite persistent tensions between Russia and Ukraine, the perception that the two powers are keeping diplomatic channels open helped reduce uncertainty over global energy supplies, putting downward pressure on prices.
Cautious statements from US Federal Reserve (Fed) officials further weakened risk appetite across commodities.
Their comments lowered market expectations for a December rate cut, with the probability falling from around 67% to 45%.
Oil prices extended their losses on Tuesday after reports indicated that shipments had resumed at a Russian oil depot previously halted due to a Ukrainian drone attack.
The restart of flows eased supply concerns and weighed further on prices.
The decline continued on Wednesday after industry data pointed to weakening demand in the US, the world’s largest oil consumer.
READ MORE; U.S. Crude Inventories Reduction Trigger Surge In Crude Oil Prices
The American Petroleum Institute (API) reported US commercial crude inventories rose by 4.4 million barrels last week, while gasoline and distillate stocks also increased.
However, official data from the US Energy Information Administration (EIA) added some support on Thursday, showing commercial crude stocks fell by about 3.4 million barrels last week, far exceeding expectations of a 600,000-barrel drop.
The decline signalled stronger refinery activity and export demand, although rising gasoline stocks raised concerns about domestic consumption.
On Friday, oil prices continued to slide as expectations for a diplomatic breakthrough in the Russia-Ukraine conflict and fading prospects for a Fed rate cut kept markets under pressure, even as new US sanctions on Russian oil majors Rosneft and Lukoil came into force.
