08:35 AM EST, 11/25/2025 (MT Newswires) -- Oil prices fell early on Tuesday following an unconfirmed report that Ukraine agreed to a peace deal with Russia brokered by the United States.

West Texas Intermediate crude oil for January delivery was last seen down US$1.20 to US$57.64 per barrel, while January Brent crude was down US$1.35 to US$62.02.

Prices dropped sharply after the ABC News, citing an unnamed U.S. official, reported Ukraine agreed to a 19-point peace plan that did not include Russian demands for a limit on the size of Ukraine's military or an amnesty for war crimes. However the agency said some details are still being negotiated. Neither Ukraine nor Russia have yet commented on the report.

An agreement to end the war that has lasted nearly four years following Russia's invasion of its neighbor in February 2022, raises concerns that removing sanctions on Russia will increase the country's oil exports into a market that is already over supplied and further boost rising global inventories. Major forecasting agencies this month said even with sanctions on Russia in place, supply is expected to continue to run higher than demand well into 2026.

"Oil prices trade lower after Monday's risk-on bounce, as signs of progress in Ukraine peace talks raise the prospect of increased Russian supply returning to the market," Saxo Bank noted.