Oil slipped as diplomatic push on Russia–Ukraine conflict outweighed bullish US stock data

Oil prices eased on Thursday as the United States intensified efforts to advance a negotiated settlement between Russia and Ukraine, prompting a reassessment of geopolitical risk premiums despite supportive inventory figures.

Brent crude settled 13 cents lower, or 0.2%, at $63.38 a barrel.

WTI fell 30 cents, or 0.5%, to $59.14 a barrel.

Futures had climbed earlier after government data showed a larger-than-expected draw in US crude inventories, reinforcing near-term demand strength. The upward momentum faded after news that Washington had put forward a peace framework aimed at ending the conflict, which has continued for more than three years.

The proposal reportedly includes territorial concessions and reductions in Ukraine’s armed forces — terms previously rejected by Kyiv — though officials said they would review the plan and consult with US counterparts before issuing a formal response. Markets interpreted this as an increasing likelihood of diplomatic engagement, narrowing expectations of sustained geopolitical disruption to supply.

Analysts said the focus now is whether sanctions due to take effect within days will proceed as planned or be delayed should discussions progress. At the same time, US gasoline and distillate inventories rose for the first time in over a month, signalling softer consumption and tempering the impact of the crude stock draw.

Written by: Aiman Haikal