04:22 PM EST, 11/21/2025 (MT Newswires) -- Oil prices extended declines into the third day on Friday amid concerns that a potential peace deal between Russia and Ukraine could further boost global crude supply.

West Texas Intermediate crude futures declined 1.8% at $57.96 a barrel in late-afternoon trade, while Brent fell 1.6% to $62.38 a barrel. Both benchmarks were on track for weekly losses of more than 3%.

US President Donald Trump worked with Russia on a plan to end the long-running conflict in Ukraine, with draft terms calling for Kyiv to cede territory, among other provisions, the Associated Press reported.

"Oil extended losses as the US pushed for a Russia-Ukraine peace deal that could boost global supply," D.A. Davidson said in a note to clients.

The push for a Russia-Ukraine pact comes as the oil market has already been gripped by oversupply worries following months of rising output from major producers. Russia faces a series of US and European Union sanctions for invading Ukraine.

Last month, the Trump administration announced sanctions on Russian oil majors Rosneft and Lukoil, citing Moscow's "lack of serious commitment to a peace process."

Earlier this month, Rystad Energy said it sees the market surplus at a "significant" 3.5 million barrels a day, despite the Organization of the Petroleum Exporting Countries and allies' plan to pause production increases in the first quarter.

Meanwhile, the number of oil rigs in the US rose by two to 419 in the week through Friday, according to data from energy services company Baker Hughes (BKR). The tally for gas increased by two to 127, while miscellaneous rigs added one to eight.

Across North America, the oil and gas rig count increased by 12 to 749, with Canada adding seven to bring its tally to 195 rigs, the data showed.