Oil falls as US draws up plan to end war in Ukraine

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

Oil prices fell on Friday as the US worked to secure a peace agreement between Russia and Ukraine, a move that could increase global supply.

Brent crude futures for January 2026 slipped more than 1%, or 66 cents, to $62.72 a barrel at 09:02 a.m. Mecca time.

WTI futures for January 2026 — the most active contract — declined 1.2%, or 71 cents, to $58.29 a barrel.

"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.

Markets are also awaiting the latest Baker Hughes US oil-and-gas rig count due later today for clues on future US supply.