Core Viewpoint - Oil prices are experiencing a decline due to geopolitical developments, particularly Ukraine's President Zelenskyy's agreement to collaborate with Washington on a peace plan, which may increase oil supply in a fragile market [1][3]. Oil Price Movements - West Texas Intermediate (WTI) for December delivery decreased by 2.51% to $57.52 per barrel, while Brent crude fell by 2.19% to $61.99 [1][2]. - This decline marks the third consecutive daily drop for WTI, leading to a projected weekly loss of over 4%, reflecting concerns over global supply growth and weakening demand [3]. Geopolitical and Economic Factors - The announcement of new U.S. sanctions on Rosneft and Lukoil, targeting key subsidiaries to limit Kremlin revenue from fossil fuels, coincides with the peace proposal news [3]. - Despite the sanctions expected to tighten supply, their impact has largely been factored into the market already [3]. - Russian Urals crude is trading at a discount of up to $23 per barrel compared to other global grades, indicating the effect of sanctions [4]. Inventory and Market Sentiment - U.S. crude stockpiles unexpectedly fell by 3.4 million barrels last week due to strong refinery activity, but this bullish inventory surprise did not lift prices as traders focused on geopolitical issues [5]. - A stronger U.S. dollar has negatively impacted dollar-priced crude, contributing to the bearish sentiment in energy markets [6]. OPEC+ Influence - OPEC+ is committed to increasing production in December, with plans to halt output increases in early 2026, which could influence market dynamics if oil prices continue to decline [6]. Future Outlook - The market is expected to remain focused on developments in Kyiv and Washington, which could significantly impact crude oil prices heading into December [7].