This aerial picture shows the oil tanker Boracay anchored off the Atlantic Coast off Saint-Nazaire, western France on October 1st, 2025. French authorities said Wednesday they were investigating the oil tanker Boracay anchored off the Atlantic Coast and suspected of being part of Russia’s clandestine “shadow fleet”.
Damien Meyer | Afp | Getty Images
Oil prices extended declines and energy stocks fell sharply on Friday morning as U.S. President Donald Trump pushed for a peace deal to end the long-running Russia-Ukraine war.
International benchmark Brent crude futures with January expiry slipped 2% to $62.09 per barrel at 11:02 a.m. London time (6:02 a.m. ET), after dipping 0.2% in the previous session. The contract is down more 16% so far this year.
U.S. West Texas Intermediate futures with January expiry were last seen 2.4% lower at $57.61, after closing Thursday off 0.5%.
Europe’s Stoxx Oil and Gas index, meanwhile, led losses during morning deals, down more than 2.7%. Britain’s Shell and BP were both trading around 1.6% lower, while Germany’s Siemens Energy fell more than 8%.
U.S. oil giants Exxon Mobil and Chevron were 0.4% and 0.2% lower, respectively, during premarket trade.
The bearish market sentiment comes as investors pore over the details of the Trump administration’s push to secure a peace deal between Russia and Ukraine.
The U.S., under a widely leaked plan, has reportedly proposed that Ukraine cede land including Crimea, Luhansk and Donetsk, and pledge never to join the NATO military alliance.
The plan also says Kyiv will receive “reliable” security guarantees, while the size of the Ukrainian Armed Forces will be limited to 600,000 personnel, according to The Associated Press, which obtained a copy of the draft proposal. CNBC has not been able to independently verify the report.
Analysts were doubtful that the peace plan, which is thought to be favorable toward Russia, would be backed by Ukraine.
Guntram Wolff, senior fellow at Bruegel, a Brussels-based think tank, was among those skeptical about whether the proposed peace plan could lead to a deal.
“I think it’s always good to talk each other so in that sense it’s a good development but I have to say when I saw the details of this supposed peace plan, I really don’t think it can fly,” Wolff told CNBC’s “Europe Early Edition” on Friday.
“Because at the core, what it says is that Ukraine should give up significant parts of its military personnel, meaning the military personnel would decrease by something like a third from 900,000 to 600,000,” he added.
A general view of a PJSC Lukoil Oil Company storage tank at an oil terminal located on the Chaussee de Vilvorde on October 30, 2025 in Brussels, Belgium.
Thierry Monasse | Getty Images News | Getty Images
Alongside the peace plan noise, energy market participants closely monitored the potential impact of U.S. sanctions against Russian oil producers Rosneft and Lukoil, with the measures taking effect from Friday, a stronger U.S. dollar and expectations for the Federal Reserve’s upcoming interest rate decision.