Oil prices eased about 1% on Friday to settle at one-month lows as the U.S. pushed for a Russia-Ukraine peace deal that could boost global oil supplies, while uncertainty over U.S. interest rates curbed investors’ risk appetite.
Brent futures fell 82 cents, or 1.3%, to settle at $62.56 per barrel, while U.S. West Texas Intermediate (WTI) crude slid 94 cents, or 1.6%, to settle at $58.06.
Both crude benchmarks were down about 3% for the week and at their lowest settlements since October 21.
Market sentiment turned bearish as Washington pushed for a peace plan between Ukraine and Russia to end the three-year war, while sanctions on Russian oil producers Rosneft (ROSN.MM), opens new tab and Lukoil (LKOH.MM), opens new tab were set to take effect on Friday.
Ukrainian President Volodymyr Zelenskiy warned on Friday that Ukraine risked losing its dignity and freedom — or Washington’s backing — over a Washington peace plan that , a proposal U.S. President Donald Trump said Kyiv should accept within a week.
Russian President Vladimir Putin said on Friday that U.S. proposals for peace in Ukraine could be the basis of a resolution of the conflict but that if Kyiv turned down the plan then Russian forces would advance further.
A peace deal could allow Russia to export more fuel. Russia was the second-biggest producer of crude oil in the world after the U.S. in 2024, according to U.S. federal energy data.
«With the news of talks coming just as U.S. sanctions on Russia’s two largest oil companies are due to take effect today, oil markets saw some relief on risks to Russian oil supply,» said Jim Reid, a managing director at Deutsche Bank.
«The market is also becoming sceptical that the latest restrictions on Russian oil companies Rosneft and Lukoil will be effective,» the analysts said.
Lukoil has until December 13 to sell its huge international portfolio.
A stronger U.S. dollar(.DXY), opens new tab also weighed on oil prices. The greenback hit a six-month high versus a basket of other currencies, making dollar-priced oil more expensive for many global buyers.
