MUSCAT : Oil benchmarks continued their downward trend, with Brent crude slipping 14 cents (0.22%) to $62.42 a barrel, while West Texas Intermediate (WTI) fell 15 cents (0.26%) to $57.91. Both contracts lost around 3% last week, hitting their lowest levels since October 21, as traders braced for the possibility of renewed Russian supply entering the global market.

The drop follows intensified diplomatic efforts between Russia and Ukraine, with negotiators from both sides reporting that they have moved closer to a potential peace agreement. The proposed framework, expected to require Kyiv to cede territory and halt its NATO ambitions, has triggered speculation that sanctions on Moscow could be eased, paving the way for previously restricted oil exports to return and potentially oversaturate the market.

The United States and Ukraine confirmed “meaningful progress” in talks held over the weekend, while US President Donald Trump has set next Thursday as a deadline for finalising a deal. European leaders, however, are pushing for more favourable terms for Ukraine, warning against rushing into an agreement.

Adding further pressure on oil prices, the US dollar strengthened sharply, heading for its biggest weekly gain in six weeks. The dollar index reached its highest level since late May.