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Oil prices fell on Friday, closing at one-month lows as Washington pushed Kyiv to accept a peace framework with Moscow, triggering expectations that Russian crude could return more freely to the market.

Brent dropped 1.3% to $62.56 a barrel and WTI slipped 1.6% to $58.06, with both benchmarks down about 3% for the week.

Market sentiment turned bearish as the US pressed Ukraine to agree to a deal within days, even as new sanctions on Rosneft and Lukoil took effect. Traders increasingly doubt strict enforcement, especially after mixed messaging from Washington, prompting short positions to expand across Brent and WTI.

Analysts said a peace agreement could ease supply risk and add barrels to an already well-supplied market, with OPEC+ and US producers continuing to increase output. US rig counts rose again this week.

A stronger dollar added downside pressure, while Federal Reserve officials signaled caution on rate cuts, weighing on risk appetite. Lower borrowing costs remain possible in the near term but the market continues to price in a slower demand backdrop.

With diplomacy advancing but far from settled, crude remains caught between fading supply risk and uneven demand expectations.

Written by: Aiman Haikal