Oil prices held steady on Monday after slipping about 3% last week, as investors weighed the prospects of a US interest-rate cut against the possibility of a Ukraine peace deal that could ease sanctions on Russia, one of the worlds major producers.

The US and Ukraine were set to resume work on a revised peace plan ahead of the Thursday deadline set by President Donald Trump, after both sides agreed to adjust the earlier version that critics said tilted too far in Moscows favor.

Brent futures rose 12 cents, or 0.2%, to 62.68 dollars a barrel by 13:00 GMT, while US West Texas Intermediate gained 11 cents, or 0.2%, to 58.17 dollars.

Jorge Montepeque, managing director at Onyx Capital Group, said: The market is very focused on the macro picture the Ukraine peace treaty and the US economy.

Analysts are waiting for more clarity on negotiations between Washington and Kyiv.

Montepeque added that US sanctions on state-owned Rosneft and private-sector Lukoil, which took effect on Friday, would normally create supply concerns that push prices higher, but the market is preoccupied with the peace effort.

US Secretary of State Marco Rubio said on Sunday that the Thursday deadline may not be final.

A peace deal could pave the way for rolling back sanctions that have constrained Russian crude exports. Russia was the worlds second-largest crude producer in 2024, behind the United States, according to the US Energy Information Administration.

Uncertainty around potential US rate cuts is another factor capping investor risk appetite.

Expectations for a December rate cut rose after New York Fed President John Williams hinted that the central bank may have room to ease in the near term.

Sugandha Sachdeva, founder of SS WealthStreet in New Delhi, said: The prospect of a Fed rate cut in December could provide some balance to the current downward bias by supporting global risk appetite.

She added: Crude prices have already fallen about 17% this year, reflecting persistent bearish sentiment At these lower levels, value-buying is expected to emerge gradually.