Oil prices remained stable as global markets monitored diplomatic developments aimed at resolving the ongoing conflict in Eastern Europe. With negotiations expected to intensify in the coming days, traders balanced the potential for progress on peace efforts against the continued friction created by sanctions targeting Russian energy output. The timing also contributed to softer activity, with U.S. markets experiencing reduced trading volumes due to the Thanksgiving holiday period.

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Benchmark crude hovered near recent levels, reflecting a cautious market that is reluctant to commit strongly in either direction until there is more certainty about geopolitical outcomes. Investors are particularly focused on the potential impact of renewed discussions involving senior U.S. officials and Russian leadership. Although diplomatic engagement is continuing, expectations remain modest, with indications that significant concessions are unlikely. This dynamic has kept risk sentiment muted, limiting any substantial upside for crude in the short term.

Market analysts noted that the possibility of a ceasefire has helped counterbalance concerns linked to the latest sanctions imposed on key Russian producers. These sanctions had initially raised supply-related fears, but optimism about diplomatic progress created a more neutral trading environment as the week progressed.

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On the supply front, the coalition of major oil-producing countries is not expected to adjust output quotas at its upcoming meeting. Several members have increased their production since early spring as part of competitive efforts to secure a larger share of global demand. With no major policy changes anticipated, traders expect supply conditions to remain largely consistent heading into the final stretch of the year.

Adding some support to prices were rising expectations that the U.S. central bank may implement a rate cut in December. Lower borrowing costs typically stimulate economic activity, which can in turn boost fuel consumption. However, analysts cautioned that the broader trading environment remains thin and may continue to lack direction unless monetary policy signals provide a more definitive catalyst.

Analysts project that U.S. crude prices will likely trade within a relatively narrow band through year-end, with limited momentum expected absent major geopolitical or policy surprises.