Crude oil and gasoline prices hit 5-week lows due to expectations of an end to the Russia-Ukraine war, potentially boosting global oil supplies. Weaker US economic news added to the negative sentiment. Ukraine agreed to a revised peace deal with Russia, but Russia’s acceptance is uncertain.

Oil prices fell as Ukraine and Russia inched closer to a peace deal. Weaker-than-expected US economic data, including retail sales and consumer confidence, dampened energy demand. Reduced crude exports from Russia and ongoing geopolitical risks provide some support to oil prices.

OPEC revised global oil market estimates from a deficit to a surplus for Q3, with the US exceeding production expectations. Production hikes will pause in Q1-2026 due to an emerging global oil surplus. The EIA raised its 2025 US crude production estimate, and OPEC+ plans to restore production cuts.

US crude oil inventories were below the seasonal average, with gasoline and distillate inventories also lower. Crude oil production fell slightly from a record high. Active US oil rigs increased slightly but remain below levels seen in the past few years.

Read more at Yahoo Finance: Crude Prices Tumble on Hopes for an End to the Russian-Ukrainian War