Crude oil and gasoline prices fell from 1-week highs on Friday, with WTI crude oil closing down -0.10% and RBOB gasoline closing down -0.32%. Prices initially rose on hopes of an end to the Russian-Ukrainian war, but later fell.

Russian President Putin expressed openness to talks with US envoy Witkoff, raising hopes of ending the war. OPEC+ is expected to maintain a pause on crude output increases in early 2026 during their virtual meeting on Sunday.

Geopolitical tensions and reduced crude exports from Russia have supported oil prices. Ukraine’s targeting of Russian refineries has limited crude export capabilities, with US and EU sanctions further curbing Russian oil exports.

Ongoing geopolitical risks, such as US military buildup for a possible attack on Venezuela, provide underlying support for oil prices. Vortexa reported a 9.7% increase in crude oil stored on tankers in the week ending November 21.

OPEC revised its Q3 global oil market estimates from a deficit to a surplus, with US production exceeding expectations. OPEC+ plans to pause production hikes in Q1-2026 due to an emerging global oil surplus, aiming to restore previous production cuts.

US crude oil inventories were below the seasonal 5-year average, with gasoline and distillate inventories also below average. Crude oil production fell slightly to 13.814 million bpd, while the number of active US oil rigs dropped to a 4-year low of 407 rigs.

Read more at Yahoo Finance: Crude Prices Erase Early Gains on Optimism for a Ukrainian Peace Deal