Oil Prices Tick Higher as U.S. Crude Stockpiles Drop and Peace Talks Reports Surface

Oil prices gained modestly in Asian trading on Thursday, supported by a sharper-than-expected draw in U.S. crude inventories and renewed speculation about a potential U.S.–Russia peace proposal for Ukraine. Brent crude futures for January climbed 0.3% to $63.71 per barrel, while West Texas Intermediate (WTI) crude rose 0.4% to $59.68 per barrel as traders reacted to fresh supply data and shifting geopolitical signals.

The latest report from the U.S. Energy Information Administration showed crude stockpiles declining by 3.4 million barrels for the week ending Nov. 14—far exceeding analyst forecasts of a 0.6-million-barrel draw. According to analysts at ING, the drop was driven by stronger crude exports, which increased by 1.34 million barrels per day compared with the previous week. Refinery activity also picked up, boosting crude oil inputs as refiners elevated run rates.

Despite the supportive crude figures, gasoline inventories rose by 2.3 million barrels and distillate stocks increased by 171,000 barrels, signaling a softer demand outlook for refined products. This mixed data led to cautious sentiment, as traders balanced tighter crude supplies against weaker consumption indicators in the fuel markets.

Geopolitical developments also added volatility to oil prices. The U.S. is preparing to implement new sanctions targeting Russia’s Rosneft and Lukoil on Nov. 21. These measures are designed to constrain Russia’s energy revenues and further restrict global flows of Russian crude. At the same time, reports suggested that U.S. and Russian officials have been discussing a new peace framework for Ukraine. According to Reuters, Washington has reportedly advised President Volodymyr Zelenskiy to consider a U.S.-drafted plan that would involve territorial concessions and weapons limitations.

Such diplomatic discussions could influence expectations for Russian oil supply if they result in reduced tensions or shifts in sanctions enforcement. ING analysts noted that signs of ongoing negotiations may ease concerns about harsher penalties on Moscow and how aggressively existing restrictions will be applied.