Oil prices remained steady in Asian markets on Monday following last week’s losses, as worries about Russian crude supply eased after the meeting between U.S. President Donald Trump and Russian President Vladimir Putin.
As of 00:15 ET (04:15 GMT), Brent crude for October delivery was nearly flat at $65.84 per barrel, while West Texas Intermediate (WTI) futures inched up 0.1% to $62.87 per barrel. Both contracts had dropped around 1.5% on Friday, finishing the week with notable losses ahead of the U.S.-Russia summit.
Trump Signals Softer Stance Toward Russia
At last week’s Alaska summit, Trump indicated alignment with Moscow’s goal of a comprehensive peace agreement in Ukraine, rather than prioritizing a ceasefire first. This shift lowered expectations for new energy sanctions and reduced fears of tighter Russian oil flows.
Previously, Trump had called a ceasefire his “key demand,” even threatening to walk out of the talks and impose tougher measures on Moscow—a stance that had raised concerns over constrained supply.
“While talks failed to secure a ceasefire, the tone and the absence of ’severe consequences’ for the lack of a truce, reduce, or at least delay, the risks of stricter sanctions,” ING analysts noted in a statement.
Trump also said on Friday that he was in no hurry to levy tariffs on countries such as China for buying Russian oil but warned he could act within weeks if progress on ending the Ukraine conflict is not made. China and India remain Russia’s top crude buyers. Meanwhile, Trump has imposed an additional 25% duty on Indian goods, effective August 27, citing the country’s Russian oil imports.
Trump to Meet Zelenskiy and European Leaders
On Monday, Trump is scheduled to meet Ukrainian President Volodymyr Zelenskiy and leading European leaders in Washington, aiming to fast-track a peace deal for Ukraine. European leaders are focused on blocking any agreements that could compromise Ukraine’s territorial integrity, adding geopolitical uncertainty for markets.
Trump posted on social media Sunday that he expects “BIG PROGRESS ON RUSSIA,” without elaborating further.
“Ultimately, Russia still wants Ukraine to cede territory, something Ukraine will be very hesitant to do, particularly without very strong security guarantees from the US and Europe,” ING analysts said.
“Ultimately, the reduced risk of tougher sanctions and secondary tariffs should allow bearish oil fundamentals to become the dominant driver for oil prices moving forward,” they added.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply