Oil drops over 2%, but closes above $63

Oil drilling rigs

Oil prices plunged at the close of trading today, Nov. 19, after reports emerged that the United States is preparing a plan to end the war between Russia and Ukraine, a development that could boost global crude supplies.

Brent crude futures for January delivery fell 2.13%, or $1.38, to $63.51 a barrel. West Texas Intermediate (WTI) crude futures for December delivery dropped 2.14%, or $1.30, to $59.44 a barrel.

This followed reports that the Trump administration is working on a plan to end the conflict between Russia and Ukraine—Washington is said to be coordinating with Moscow on the plan and has shared some details with Kyiv.

Analysts quoted by Reuters believe that a peace agreement could pave the way for increased Russian oil flows to the market, deepening concerns about a global supply glut.

These developments coincide with the markets anticipating the implementation of US sanctions on Russian oil companies Lukoil and Rosneft, which are set to take effect on Nov. 21.

The decline in oil prices today was limited by data released by the US Energy Information Administration, which showed that crude oil inventories in the US fell by 3.4 million barrels last week, while estimates had indicated an increase of 100,000 barrels.