Investing.com– Oil prices fell slightly in Asian trade on Friday, amid sustained risk-aversion before more cues on U.S. monetary policy from Federal Reserve Chair Jerome Powell at the Jackson Hole Symposium.

But oil prices were headed for weekly gains, amid increasing signs that peace negotiations between Russia and Ukraine were stalling, heralding more supply risks.

Signs of strong U.S. oil demand, following a bigger-than-expected draw in inventories, also aided oil prices.

Brent Oil Futures fell 0.2% to $67.51 a barrel, while West Texas Intermediate crude futures fell 0.3% to $62.95 a barrel by 21:20 ET (01:20 GMT).

Brent and WTI futures were trading up between 1.5% and 3% this week, after largely recouping losses made at the beginning of the week.

While oil prices had tumbled amid increased efforts by the U.S. to broker a Russia-Ukraine peace treaty over the past week, traders were seen growing increasingly convinced that a deal will not be signed in the near-term. President Donald Trump met Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, and a host of European leaders.

But the meetings did not appear to have yielded any conclusive results on the war, with markets left wanting on several details– including the timing of Russia-Ukraine talks, and the nature of U.S. and European security guarantees made to Ukraine.

Russia and Ukraine both blamed each other for stalling the peace process, while also keeping up military offensives against each other. Russia was seen launching a major air attack on Ukraine on Thursday, after Kyiv claimed to have hit an oil refinery.

Uncertainty over an end to the war also presented the potential for tighter U.S. sanctions on Russian oil. Trump recently outlined 50% tariffs against India over its purchase of Russian crude.

Oil’s gains this week also came amid some optimism that demand in the U.S., the world’s biggest fuel consumer, remained robust.

U.S. inventories saw a much bigger than expected 6 million barrel draw in the week to August 15, data showed earlier this week.

Purchasing managers index data for August showed improvements in both manufacturing and services activity, indicating that business activity in the country remained robust.

Focus is now squarely on Fed Chair Jerome Powell’s address at the Jackson Hole Symposium on Friday, for more cues on interest rates and the economy.

Waning expectations that the Fed will cut rates in September put some pressure on oil prices this week, especially as the dollar firmed.