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Oil prices recorded a second steep weekly loss, as market participants continued to digest the growing prospects of a peace deal between Russia and Ukraine.

This has also offset concerns about supply disruption in the midst of simmering tension between the US and Venezuela. Together with the Russia-Ukraine talks, these themes have dominated the oil market since last week.

Brent, the benchmark for two thirds of the world’s oil, gained 1.1 per cent to close at $60.47 a barrel on Friday. West Texas Intermediate, (WTI), the gauge that tracks US crude, gained 0.9 per cent to settle above $56.6 a barrel. That put Brent and WTI down ​about 1 per cent this week after both crude benchmarks fell about 4 per cent last week.

In the year to date, Brent has now given up 20 per cent, while WTI has receded by 22 per cent.

The week’s developments have shown signs of extending oil’s reduction, as market participants price in a large oversupply for early 2026, said Vijay Valecha, chief investment officer of Dubai-based Century Financial.

Crude prices are “expected to demonstrate strong bearish momentum with the growing prominence of oversupply instead of geopolitical risks”, he said.

“Expectations for a peace settlement between Russia and Ukraine further pressured oil, as markets expect loosening of sanctions and a potential rise in Russian exports, which further support the oversupply theme.”

Negotiations about ending the war in Ukraine have reached a “major moment”, UK Defence Secretary John Healey said this week, despite warnings that the peace deal is an “illusion” that Russia will not accept.

The outcome of high-level talks involving top US envoys in Berlin, where Ukraine appeared to accept that any deal would mean it could not join Nato, has been well received in Washington.

US President Donald Trump hailed potential progress from “very long and very good talks” with Ukrainian President Volodymyr Zelenskyy and the leaders of the UK, France, Germany and Nato.

“I think we’re closer now than we have been ever,” Mr Trump said.

Meanwhile, oil prices rose early on Wednesday as supply concerns increased after Mr Trump ordered a “complete and total” blockade of sanctioned oil tankers moving in and out of Venezuela – part of continuing US military action against the South American country.