Oil falls as focus remains on Ukraine talks

WTI crude oil futures fell toward $58 per barrel on Thursday, reversing part of the more than 1% gain from the previous session, as investors continued to seek clarity on the supply outlook amid ongoing Russia-Ukraine peace efforts.

A US presidential envoy is scheduled to travel to Russia next week for further negotiations, raising speculation that progress could ultimately pave the way for sanctions on Russian crude to be eased.

Such a development would potentially bring additional barrels back to the global market. Still, significant doubts remain over the likelihood of a near-term breakthrough, and analysts caution that even if an agreement materializes, logistical and political hurdles mean Russian exports would not rebound immediately.

At the same time, traders are closely watching the upcoming OPEC+ gathering this weekend for guidance on production strategy.

The alliance recently paused additional output increases planned for the first quarter of next year, citing uncertain global demand and abundant non-OPEC supply growth.

Market participants are now waiting to see whether the group will extend existing curbs, adjust quotas, or maintain a cautious stance amid signs of weakening consumption in key economies.

Crude prices remain under pressure overall, with WTI on track for a fourth consecutive monthly decline in November, marking its longest losing streak since 2023.

Expectations of a supply surplus continue to weigh heavily on sentiment, as rising US output and resilient production from other major producers outpace demand growth, keeping the market tilted toward oversupply despite geopolitical risks.