Oil drops 2% as US seeks Russia-Ukraine peace deal

NEW YORK:

Oil prices fell about 2% on Friday to a one-month low as the US pushed for a Russia-Ukraine peace deal that could boost global oil supplies, while uncertainty over US interest rates curbed investors' risk appetite. Brent futures fell $1.05, or 1.7%, to $62.33 per barrel 2036 GMT, while US WTI crude slipped $1.17, or 2.0%, to $57.83.

That put both crude benchmarks down over 3% for the week and on track for their lowest closes 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 and Lukoil are set to take effect on Friday.

Ukrainian President Volodymyr Zelenskiy said on Friday that Ukraine faced losing its dignity and freedom or Washington's support over the US peace plan, which US President Donald Trump said Kyiv should agree to by Thursday. Russian President Vladimir Putin said on Friday that Moscow had received the US proposals for peace in Ukraine and that the plan could be the basis of a peaceful resolution of the conflict.