Crude Oil Prices Recover Slightly on Nov 26 from One-Month Lows

Crude oil prices regained some ground on Wednesday after falling to one-month lows in the previous session. The recovery in both Brent and WTI crude came as markets reacted to fresh indications that Ukraine is nearing a potential peace agreement with Russia. 

Any progress toward ending the conflict is expected to reshape global supply dynamics, particularly with regard to sanctions on Russian oil.

Impact of Peace Deal Hopes

Brent crude futures rose 0.3% to $62.67 a barrel, while U.S. West Texas Intermediate gained 0.24% to $58.09 a barrel. Both benchmarks had fallen by 89 cents on Tuesday following a series of diplomatic developments. 

Ukrainian President Volodymyr Zelenskiy signaled that only a few disagreements remained regarding a U.S.-backed peace framework. Meanwhile, U.S. President Donald Trump directed his representatives to meet independently with Russian and Ukrainian officials, while reports suggested a possible Zelenskiy visit to Washington to finalise the agreement.

Sanctions Pressure and Global Supply

Although optimism over peace talks weighed on prices earlier, recent sanctions imposed by Britain, Europe and the United States continue to constrain Russian oil flows. India, a key buyer of Russian crude, is expected to see its oil imports from Russia fall to a three-year low in December.

Support from Economic Expectations

Adding support to the market are increasing expectations of a potential U.S. Federal Reserve interest rate cut in December. Recent data indicating softer inflation and weaker retail spending has raised hopes of monetary easing, which could stimulate economic activity and fuel higher oil demand.

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Conclusion

While geopolitical progress has introduced short-term volatility, expectations of economic support measures are helping stabilise prices. Crude may remain sensitive to headlines, but improving sentiment could limit further downside.

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