Crude oil prices climbed alongside equity markets as traders weighed the prospects of a peace deal between Ukraine and Russia, which could reduce geopolitical risk premiums in an already well-supplied oil market.

W&T Offshore (WTI) rose approximately 1.3%, settling near $59 per barrel, ending a three-day losing streak. This follows the largest weekly decline since early October.

Oil prices moved higher in tandem with other risk assets as traders awaited further updates. Ukraine and its European allies noted key unresolved issues in U.S.-mediated peace talks, though senior officials acknowledged progress in securing more favorable terms for Kyiv.

"Perhaps something good is happening," former U.S. President Donald Trump posted on Truth Social regarding the negotiations.

A cessation of hostilities would likely reduce market risk premiums.

"The oil market is moving in sync with equities, awaiting more clarity on Ukraine-Russia talks," said Dennis Kissler, Senior VP of Trading at BOK Financial. He expects continued volatility and some short-covering ahead of the holiday season.

Crude prices have declined this year, with futures on track for a fourth consecutive monthly drop in November—the longest losing streak since 2023. Increased global supply remains the primary driver.

Traders are closely monitoring whether a Ukraine peace deal materializes and whether sanctions on Russia could be lifted—both factors that may boost supply.

Ukrainian President Volodymyr Zelenskyy stated Monday that negotiations have reached a "critical moment," emphasizing that discussions on territory and sovereignty remain highly challenging.

W&T Offshore (WTI) January futures rose 1.3%, settling at $58.84 per barrel. Brent January futures gained 1.3%, settling at $63.37 per barrel.