Oil falls sharply after report of US proposal to end Russia-Ukraine war

LONDON, Nov 19 (Reuters): Oil prices fell sharply on Wednesday following a report of a US proposal to end the Russian war in Ukraine, as oversupply concerns continued to weigh on prices.
Brent crude futures fell $1.81, or 2.8 per cent, to $63.08 a barrel by 1330 GMT, after gaining 1.1 per cent the previous session.
US West Texas Intermediate crude futures fell $1.74, or 2.86 per cent, to $59 a barrel, after rising 1.4 per cent on Tuesday.
Prices extended declines on Wednesday after news of fresh efforts to end the war in Ukraine.
Ukraine has received "signals" about a set of US proposals to end the war that Washington has discussed with Russia, a senior Ukrainian official told Reuters on Wednesday. Ukrainian President Volodymyr Zelenskiy will hold talks in Turkey on Wednesday and meet US Army officials in Kyiv on Thursday in a new drive to revive peace negotiations with Russia.
If peace talks succeeded, it would reduce supply risks allowing the market to focus on current supply and demand dynamics, which point to an oversupplied market, Saxo Bank analyst Ole Hansen said. Meanwhile, Russian Deputy Prime Minister Alexander Novak said that US sanctions against Rosneft and Lukoil, imposed in October in retaliation for the stalling of peace talks on Ukraine, have not impacted oil production in Russia. The risk of a supply glut continued to weigh on prices along with falling gasoil futures on Wednesday following strong gains in recent sessions, Hansen added.