Oil prices drifted lower on Monday, adding to last week’s losses as signals of progress in Russia–Ukraine peace discussions and a stronger U.S. dollar continued to pressure the market.
As of 01:48 GMT, Brent crude slipped 14 cents, or 0.22%, to $62.42 a barrel, while West Texas Intermediate eased 15 cents, or 0.26%, to $57.91.
The two benchmarks shed roughly 3% over the prior week, falling to their weakest settlements since October 21 amid concerns that an eventual peace arrangement could result in sanctions being rolled back and a wave of Russian crude returning to global buyers.
In a note, IG’s Tony Sycamore said “The sell-off was triggered mainly by President Trump’s forceful push for a Russia-Ukraine peace deal, which markets see as a fast track to unlocking substantial Russian supply.” He also noted that progress toward a deal overshadowed the short-term impact of new U.S. sanctions on Rosneft and Lukoil, which took effect Friday and left nearly 48 million barrels of Russian crude stranded offshore.
Over the weekend, U.S. and Ukrainian officials reported progress on a peace proposal requiring Kyiv to surrender territory and abandon its NATO membership ambitions. President Donald Trump set Thursday as the deadline for reaching an agreement, though European leaders have pushed for revisions.
A finalized deal could unwind sanctions that have sharply curtailed Russia’s oil exports in recent years. Russia ranked as the world’s second-largest crude producer in 2024, trailing only the United States, according to the U.S. Energy Information Administration.
Oil also came under pressure from broader macro uncertainty. The outlook for interest-rate policy remains murky, though expectations for a rate cut next month firmed after New York Fed President John Williams signaled a move “in the near term.”
Meanwhile, the dollar index pushed toward its strongest weekly gain in six weeks, reaching levels last seen in late May. The currency’s advance adds headwinds for crude because a stronger dollar makes oil costlier for buyers using other currencies.