Oil prices moved lower on Monday, continuing last week’s decline, as progress in Russia-Ukraine peace negotiations and a stronger U.S. dollar pressured the market.
Brent crude slipped 14 cents, or 0.22%, to $62.42 per barrel at 0148 GMT. West Texas Intermediate dropped 15 cents, or 0.26%, to $57.91 a barrel.
Both major benchmarks fell around 3% last week, reaching their lowest closes since October 21. Traders grew concerned that a potential Russia-Ukraine agreement could remove sanctions on Moscow and release previously restricted crude back into global supply.
IG analyst Tony Sycamore noted that the market downturn was largely driven by President Donald Trump’s aggressive push for a peace agreement. He said traders view this as a quick route to unlocking significant volumes of Russian oil.
Sycamore also said that momentum toward a peace deal outweighed the short-term impact of new U.S. sanctions on Rosneft and Lukoil, which began Friday and left nearly 48 million barrels of Russian crude stranded at sea.
On Sunday, U.S. and Ukrainian officials said they made progress on a peace proposal that would require Ukraine to give up territory and retreat from its goal of joining NATO.
President Donald Trump has set a Thursday deadline for the talks, while European leaders continue to push for a more favorable agreement.
A finalized deal could reverse sanctions that have limited Russian exports. Russia was the world’s second-largest crude producer in 2024, behind only the United States, according to the U.S. Energy Information Administration.
Concerns about increased supply and uncertainty around potential U.S. interest rate cuts continued to weigh on investor sentiment.
Expectations for a rate cut next month grew after New York Federal Reserve President John Williams said a reduction could come “in the near term.”
Meanwhile, the U.S. dollar was on track for its biggest weekly gain in six weeks. The dollar index hit its highest level since late May, making oil more expensive for buyers using other currencies.
