RoydadNaft –  Oil prices dropped 1.5% on Friday, marking the third consecutive session of declines, as the United States pushes for a Russia-Ukraine peace agreement that could boost global market supply. Meanwhile, uncertainty over interest rate cuts has curbed investor risk appetite.

Brent crude prices—after a 0.2% dip in the previous session—fell another 96 cents, or 1.5%, to $62.42 per barrel by 7:30 a.m. GMT. WTI crude, following a 0.5% decline on Thursday, shed 1.8%, or $1.03, to reach $57.97 per barrel.

Both contracts are on track for a weekly loss exceeding 2.5%, driven by fears of oversupply, which would erase most of last week’s gains.

Market sentiment turned bearish amid Washington’s efforts to broker a peace plan between Ukraine and Russia to end the three-year war, even as U.S. sanctions against top Russian oil producers Rosneft and Lukoil take effect on Friday. Saxo Bank analysts noted in a client memo, referencing Ukrainian President Volodymyr Zelenskyy: “With Zelenskyy’s agreement to collaborate on the U.S.- and Russia-proposed peace plan, alongside the U.S. sanctions on two of Russia’s largest oil firms taking hold on Friday, oil prices continued their downward trajectory.”

However, some analysts expressed skepticism about the timeline for reaching a peace deal.

ANZ analysts told clients in a note: “A deal is far from certain.” They added that Kyiv has repeatedly deemed Russia’s demands unacceptable, stalling any progress.

“The market is also doubtful about the effectiveness of the latest curbs on Russia’s oil giants, Rosneft and Lukoil,” the note continued.

Lukoil has until December 13 to divest its vast international portfolio.

A stronger U.S. dollar—amid softer U.S. stock performance—further pressured oil prices, as the dollar-denominated commodity becomes costlier for holders of other currencies.

Kelvin Wong, senior market analyst at OANDA, told Reuters via email: “The oil market is likely to face multiple headwinds in the coming weeks.” He pointed to indirect downward pressure via a negative feedback loop in U.S. equities, following a reversal in the S&P index’s downtrend.