Oil prices were steady on Thursday (November 27) as market participants weighed negotiations to end the war in Ukraine against the impact of Western sanctions on Russian supplies, although trading was expected to remain quiet due to the Thanksgiving holiday in the US.

Brent crude futures rose 5 cents, or 0.1%, to $63.18 a barrel at 14:12 GMT, while US West Texas Intermediate crude futures rose 18 cents, or 0.3%, to $58.83 a barrel.

Russian President Vladimir Putin said on Thursday that the outline of a draft peace plan discussed by the United States and Ukraine could form the basis of a future agreement to end the conflict in Ukraine. Putin also said that once Ukrainian forces withdraw from positions they hold in key areas, fighting will cease, but that if not, Russia will achieve its goals by force.

US and Ukrainian officials have been working to narrow their differences over President Donald Trump's plan to end Europe's deadliest conflict since World War II. Kyiv fears it will be forced to accept a deal largely based on Russia's terms, including territorial concessions.

"Geopolitical volatility continues, and hopes for a potential ceasefire between Russia and Ukraine have offset supply concerns stemming from new U.S. sanctions on key producer Russia," Barclays said in a note.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) and its allies are likely to keep oil production levels unchanged at their meeting on Sunday and agree on a mechanism to assess members' maximum production capacity, two delegates from the group and a source familiar with the OPEC+ negotiations told Reuters.

The eight OPEC+ nations, which had been gradually increasing production through 2025, are expected to maintain their policy of halting production increases in the first quarter of 2026, the two delegates said.

Rising expectations of a U.S. Federal Reserve interest rate cut in December have limited the decline in crude prices. Lower interest rates typically stimulate economic growth and boost oil demand.

"We are now approaching the end of the year with thinner liquidity, with no new drivers unless the Fed surprises the market with a hawkish tone at the December 10th FOMC meeting," said Kelvin Wong, senior market analyst at OANDA. "WTI crude oil is likely to range between US$56.80 and US$60.40 through the end of the year," he added. (alg)

Source: Reuters.com