Oil prices fell 1.5% on Friday, extending declines for a third straight session as the United States pushed for a Russia-Ukraine peace deal that could swell global market supply, while uncertainty over its rate cuts curbed investors’ risk appetite.
Brent crude futures fell 93 cents, or 1.5%, to $62.45 a barrel by 0416 GMT, after slipping 0.2% in the previous session. U.S. West Texas Intermediate was down 1.7%, or 98 cents, at $58.02 a barrel, after ending Thursday down 0.5%.
Both contracts are set to fall more than 2.5% this week on oversupply concerns, erasing most of last week’s gains. Market sentiment turned bearish as Washington pushed for a peace plan between Ukraine and Russia to end the three-year war, while sanctions on top Russian oil producers Rosneft and Lukoil are set to take effect on Friday.
“Oil extended declines as Zelenskiy agreed to work on a US- and Russia-drafted peace plan, with U.S. sanctions on two Russian oil majors due Friday,” Saxo analysts said in a client note, referring to Ukrainian President Volodymyr Zelenskiy.
