Oil markets took a sharp turn this week as reports of progress in the Russia-Ukraine peace talks and a strengthening U.S. dollar weighed on prices. According to Reuters, both West Texas Intermediate and Brent crude benchmarks lost around 3% last week, settling at levels not seen since October 21.
"All eyes are on the Russia-Ukraine negotiations right now," said an oil trader quoted by Reuters. "Any signs of a potential resolution to the conflict would likely put significant downward pressure on oil prices." At the time of writing, WTI was trading flat at $58.05 per barrel, while Brent hovered around $62.58.
Geopolitics Clouds the Outlook
The uncertainty around the Russia-Ukraine conflict has been a major driver of oil market volatility in recent months. Reuters reported that the potential for a diplomatic breakthrough has traders on edge, as a resolution could mean a return of Russian crude to global markets and ease supply concerns.
"It's a delicate balance," said an industry analyst. "The market is torn between the prospect of more oil supply if the talks progress, and the risk of further disruptions if they fall apart."
Adding to the pressure on prices is the strengthening U.S. dollar, which makes oil more expensive for buyers using other currencies. CNBC's Daily Open newsletter noted that the greenback's rise has been fueled by expectations that the Federal Reserve may cut interest rates sooner than previously thought, in an effort to support the economy.
India Turns to U.S. Energy Amid Tariff Threats
Elsewhere, OilPrice.com reported that India has agreed to deepen its energy trade with the United States in a bid to avoid threatened tariffs from President Donald Trump. The article explained that Trump has been pressuring several countries to increase imports of U.S. gas, and India has decided that complying is the best way to shield its economy from potential trade restrictions.
"India, like several other Asian countries, has decided that agreeing to increase imports is the best way to help avoid its economy being hit hard by restrictions on trade with the U.S.," the report stated.
Offshore Drilling Debate Reignites in California
The Trump administration's push to reopen the California coast to offshore oil and gas drilling is also making waves, according to OilPrice.com. The article noted that the president is aiming to allow new exploration operations, which would be the first time in several decades that such activity has been permitted in the region.
"New oil and gas drilling could commence in California if President Donald Trump gets his way, as the U.S. federal government continues to support a 'Drill, baby, drill' approach to fossil fuel production," the report said.
Looking Ahead: EV Market Disruption on the Horizon?
As the oil and gas industry navigates these geopolitical and policy shifts, the electric vehicle (EV) sector is also facing significant uncertainty, according to OilPrice.com. The article suggested that a "price war" could be looming, as a surge in used EV supplies and a crowded market create challenges for automakers.
"Times are very tough for EV makers, but may be shaping up to be better than ever for EV buyers," the report concluded. "A record number of EV leases will be returned in the United States in 2026, causing a surge in used EV supplies and therefore making the used vehicles more affordable than ever."
Reporting based on coverage from Reuters, CNBC, and OilPrice.com, November 23-24, 2025.