08:43 AM EST, 11/26/2025 (MT Newswires) -- Oil prices fell to the lowest in a month early on Wednesday on rising supply and rising pressure for a peace deal for Russia's war on Ukraine, even as a report showed a drop in U.S. inventories last week.

West Texas Intermediate crude oil for January delivery was last seen down US$0.19 to US$57.76 per barrel, the lowest since Oct.20, while January Brent crude was last seen down US$0.23 to US$62.25.

The drop comes as global inventories rise as supply runs well ahead of demand, with additional barrels coming to the market next week as OPEC+ makes its third monthly production increase of 137,000 barrels per day following the full return of 2.2-million bpd of output cuts in December.

Fresh hopes for a peace deal in Russia's war on Ukraine are also pressuring prices, as the United States and Ukraine presented a potential agreement for a cease fire, though details have not been released. The Guardian on Wednesday reported a Kremlin aide said the potential deal requires "truly serious analysis".

An end to the near four-year war could see sanctions on Russia's oil exports end, adding further supply to the market.

"The White House reports "tremendous progress" in talks with Ukraine, preparations have begun for Volodymyr Zelenskyy's visit to the US to finalise the remaining contentious points of the agreement, and the US is sending its envoy to Russia. Yet the latest efforts to broker an agreement between the warring parties raise more questions than they answer. Are the gaps in their positions, on territorial demands, NATO membership, the size of the Ukrainian military, and Russia's frozen assets, really bridgeable? If they are, and sanctions on Russia are lifted, oil prices will likely resume their downward trajectory," PVM Oil Associates noted.

The American Petroleum Institute released its weekly survey of U.S. oil inventories on Tuesday that showed a drop of 1.4-million barrels last week. The Energy Information Administration will release official storage data later on Wednesday morning.