Oil prices settle lower, post weekly drop of 3%

Oil prices declined on Friday as the US works on a peace agreement between Russia and Ukraine

Oil prices fell on Friday at close as the US intensified efforts to broker a peace agreement between Russia and Ukraine, a move that could boost global crude supply.

Brent January futures dropped 1.29%, or 82 cents, to $62.56 a barrel, posting a 2.84% weekly loss.

US WTI January futures — the most active contract — slipped 1.59%, or 94 cents, to $58.06 a barrel, widening their weekly decline to 3.4%.

The losses came after the administration of President Donald Trump presented Moscow and Kyiv with a proposed framework to end the nearly four-year conflict.

Moscow welcomed the plan, saying it could form the basis for a peaceful resolution, while Kyiv reacted cautiously, describing it as a choice between compromising its dignity or risking the loss of US support.

A peace deal could allow Russia to increase crude exports, especially if Western sanctions ease following an end to the war, potentially adding more supply to global markets.