Oil Prices Extend Slide for Third Straight Session as Peace Push Weighs on Sentiment

November 21, 2025: Oil prices declined for a third consecutive session on Friday, with global benchmarks retreating amid international diplomatic talks involving the United States, Ukraine, and Russia, which hinted at a potential return of supply to the market. Weaker risk appetite was further fueled by cautious expectations of U.S. interest rate cuts.

Benchmarks Weaken as Weekly Losses Accumulate

Brent crude futures were down 71 cents or 1.12 percent to $62.67 a barrel by early Friday, continuing from Thursday’s very small loss. Meanwhile U.S. West Texas Intermediate (WTI) crude fell the same amount ($0.71) or 1.20 percent to $58.29 a barrel after participating in the previous session a move lower of -0.5 percent.

Both benchmarks seem headed for weekly losses of more than 2 percent as concerns related to oversupply remain.

Peace Efforts Shift Geopolitical Premium

Following Washington’s push for a peace agreement to end the three-year conflict between Ukraine and Russia, market sentiment softened over the week. Crude prices came under pressure as traders evaluated the timing and scale of Russia’s potential return to global supply.

This news comes as sanctions on major Russian oil producers Rosneft and Lukoil are due to go into effect on Friday. Lukoil has a deadline of December 13 to divest its international holdings, which further complicates the supply situation. The prospect of a diplomatic resolution has also added downward pressure by decreasing the geopolitical risk premium priced into crude prices.

Stronger Dollar Reflects Additional Pressure

A firmer U.S. dollar also contributed to the weakness in crude markets since a stronger dollar would make oil more expensive for buyers using other currencies. The dollar is on track for its strongest week in over a month, as support grew; there was little expectation that the Federal Reserve would be cutting rates next month.

Crude markets remain cautiously poised heading into the last few sessions of the week, with geopolitical uncertainty easing and monetary policy outlooks shifting.

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