Oil prices fell as investors monitored US-led efforts to end the war in Ukraine, while awaiting the OPEC+ meeting expected to be held later this week.
Brent crude fell to around $62 a barrel after rising 1% on Wednesday, while West Texas Intermediate crude was near $58.
With U.S. presidential envoy Steve Witkopf preparing to lead a delegation to Russia for talks next week, traders are assessing whether an agreement to end the war is possible, and what that would mean for crude oil flows.
Meanwhile, OPEC+ is scheduled to hold a meeting on November 30. The alliance decided earlier this month to freeze further production increases during the first quarter of next year, following a rapid increase in supply in 2025.
Crude oil is heading towards its longest losing streak since 2023.
Crude oil is on track for its fourth monthly decline in November, its longest losing streak since 2023. Prices have fallen due to expectations of a supply glut, with supplies exceeding demand levels, and more recently, diplomatic developments related to Ukraine.
However, nearly 20 oil traders and investors surveyed by Bloomberg said they either do not expect any peace agreement at all, or that if one is reached, it will take time for increased flows of Russian barrels to the market to materialize.
Harith Khurshid, investment director at Carobar Capital LP, said: The peace agreement between Ukraine and Russia means nothing unless it translates into real oil. The market needs pipelines, ships, and contracts; a handshake alone will not be enough.
Trading on Thursday may be weak due to the Thanksgiving holiday in the United States.
