Oil prices nudged higher on Monday after posting their largest weekly loss since early October, as markets digested the possibility of a Ukraine-Russia peace agreement that could flood global markets with additional crude, Bloomberg reported.

Brent traded above 62 US dollars a barrel, recovering from a near 3 percent fall last week, while West Texas Intermediate remained under 58 US dollars. Analysts said optimism over a diplomatic breakthrough in Geneva was tempered by lingering uncertainties over sanctions and timing.

European leaders have urged more careful negotiation to prevent premature concessions by the Trump administration, which initially targeted a Nov. 27 deadline for Ukraine’s approval. US Secretary of State Marco Rubio suggested that timeline could slip into the following week.

Markets are also factoring in rising output from OPEC+ and American producers, alongside expectations of a supply surplus in 2026. Any easing of sanctions on Russia could further weigh on prices, leaving crude on track for an annual decline.