Oil falls on signs of renewed push to end Russia-Ukraine war

Oil prices fell on Wednesday after reports indicated the United States is renewing its push to end Russia's war in Ukraine and has drafted a framework for it.

Brent crude futures fell $1.63, or 2.5%, to $63.26 a barrel 12:15 p.m. ET (1715 GMT), while U.S. West Texas Intermediate crude futures were down $1.56, or 2.6%, to $59.18.

The U.S. has signaled to Ukraine President Volodymyr Zelenskiy that his side must accept the U.S.-drafted framework to end the war, which proposes Kyiv giving up territory and some weapons, two sources told Reuters.

An end to the war in Ukraine might pave the way for higher Russian oil flows, adding to oversupply concerns, analysts said.

"With the amount of oil on the water, in floating storage and what has been sanctioned, prices will probably end up in the low 50s as all of that oil that is sanctioned from Russia will probably come to market," said Scott Shelton, energy specialist at TP ICAP Group.

The U.S. last month announced sanctions against Russian oil majors Rosneft and Lukoil, setting a November 21 deadline for companies to wind down business with the companies. The sanctions had already reduced Moscow's oil revenues and are likely to reduce the amount of oil it can sell in the long-term, the U.S. Treasury said on Monday.