November 21, 2025
Crude oil prices fell on Friday in the global commodity market, as expectations for a diplomatic breakthrough in the Russia-Ukraine war and fading prospects of a US Federal Reserve (Fed) rate cut in December pressured markets, coupled with the coming into force of new US sanctions on Russian oil majors Rosneft and Lukoil.
International benchmark Brent crude was trading at 0.8% down from $62.60 the previous close to $62.12 per barrel. US benchmark West Texas Intermediate, WTI, also dropped by about 1% to $58.09, compared to $58.66 in the prior session.
Office ot the Ukrainian President Volodymyr Zelenskyy, said in a statement on Telegram that it received a new draft plan from the US aimed at reviving the stalled peace talks with Moscow, “The President of Ukraine officially received a draft plan from the American side, which, according to the American side, can intensify diplomacy.”
Zelenskyy outlined the fundamental principles that are important for Kyiv and agreed to work on the points of the plan following the result of a meeting held earlier Thursday.
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It further stated that Kyiv has supported US President Donald Trump’s proposals to end the over three-and-a-half-year Russia-Ukraine war since the beginning of the year, and is ready to work with Washington and partners in Europe and around the world.
Zelenskyy is billed to discuss the “available diplomatic opportunities” and the main points that are “needed for peace” with US President Donald Trump “in the coming days,” the statement added.
About an hour before the release of the statement, Ukrainian media outlets, including public broadcaster Suspilne, reported that Zelenskyy met a US Army delegation in Kyiv, led by Army Secretary Dan Driscoll. Zelenskyy later confirmed the meeting in a statement on US social media company X.
Driscoll arrived on Wednesday, where he held talks with Defense Minister Denys Shmyhal. He also met with Prime Minister Yulia Svyrydenko on Thursday.
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Expectations that the war could end, sanctions on Russian oil could be lifted, and a resulting increase in supply could hit the market are putting downward pressure on prices.
Supply risks originating in Russia are also limitations to the downward trend in prices. On Oct. 23, US President Donald Trump added Lukoil, Rosneft and their subsidiaries to the sanctions list, saying they showed a “serious lack of commitment” to the peace process aimed at ending the war in Ukraine.
US sanctions targeting major Russian producers Rosneft and Lukoil are set to take effect on Friday.
Analysts say the move could weaken global oil flows and push buyers to the open market as the risk of supply disruptions from Russia rises.
READ MORE; Decline In Oil Prices As Russian Shipments Boost Supply
On the demand side, investors are watching for signals on the Fed’s interest rate policy.
Analysts said the recovery in nonfarm payrolls eased concerns about a cooling job market. The stronger-than-expected figures were the final employment report before the Federal Reserve’s Federal Open Market Committee meets on Dec. 9–10.
With these developments, the probability of a Fed rate cut in December has fallen to 35% in money market pricing. Analysts are of the views that the high-rate environment, which supports the dollar, could weigh on prices by weakening oil demand.
