Oil prices declined in early trading on Friday and were poised to end lower for the second consecutive week, as increasing expectations of a Russia-Ukraine peace agreement mitigated worries regarding supply interruptions stemming from a blockade of Venezuelan oil tankers. Brent crude futures declined by 9 cents, representing a 0.2% decrease, settling at $59.73 a barrel as of 0111, while U.S. West Texas Intermediate crude dropped 16 cents, or 0.3%, to $55.99 a barrel. On a weekly basis, both benchmarks recorded losses exceeding 2%. The pressure reflects a moderation in geopolitical risk premiums as markets reassess near-term supply threats.

U.S. President Donald Trump on Thursday said negotiations aimed at ending the Ukraine conflict are “getting close to something,” ahead of a planned U.S. meeting with Russian officials this weekend. At the same time, uncertainty remains over how the United States would enforce Trump’s announced blockade of sanctioned Venezuelan oil tankers, which account for roughly 1% of global supply. Adding to the complexity, the U.S. Coast Guard last week seized a Venezuelan oil tanker, underscoring the uneven application of enforcement measures. These developments have left markets weighing the credibility and impact of competing geopolitical signals.

“Uncertainty over enforcement details and optimism that a potential U.S.-led Ukraine peace deal could still emerge are easing global supply concerns and tempering geopolitical risk premiums,” analyst Tony Sycamore said on Friday. Analysts broadly agree that additional sanctions or measures targeting Russian oil would pose a far greater supply risk than the proposed Venezuelan tanker blockade. In a related development, Venezuela on Thursday allowed two unsanctioned very large crude carriers to depart for China, according to sources familiar with the country’s oil exports, further softening fears of an immediate supply squeeze.

Analysts at Bank of America said falling oil prices could eventually curb supply growth, helping to prevent a deeper and more sustained price slump. From a technical perspective, Sycamore noted that a rebound above resistance in the $56.70–$56.90 zone would strengthen the case that this week’s drop to the $54.98 low was a false downside break. Conversely, a decisive move below the $54.98 area would revive bearish momentum and shift focus toward the psychological $50.00 level.