Oil prices fell in early Asian trading Tuesday as investors weighed developments from U.S.-Ukraine discussions, focusing on potential talks between Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin.
As of 1:05 a.m. ET (05:05 GMT), October Brent crude futures dropped 0.5% to $66.16 per barrel, while West Texas Intermediate (WTI) futures declined 0.8% to $62.22 per barrel. Both contracts had gained nearly 1% on Monday after U.S. Trade Adviser Peter Navarro criticized India’s discounted Russian crude purchases, raising concerns over global supply flows.
Trump-Zelenskiy Summit Draws Attention
President Donald Trump hosted Zelenskiy at the White House Monday, joined by major European leaders, in a high-stakes meeting aimed at exploring avenues to end the conflict in Ukraine.
During his remarks, Trump pledged that the U.S. would support Ukraine’s security as part of any peace deal, though he did not elaborate on the specifics. Zelenskiy called the statement “a major step forward.”
“There was no critical breakthrough. It appears the next step is a meeting between Zelensky and Putin, possibly within two weeks,” ING analysts noted in a report.
Next Steps: Putin-Zelenskiy Meeting
Trump indicated that arrangements for a Zelenskiy-Putin meeting are underway and suggested the possibility of a subsequent three-way discussion, keeping hope alive for negotiation progress. European leaders emphasized the need for a ceasefire first, while Trump voiced support for Europe-led security guarantees for Kyiv.
“Betting markets aren’t overly convinced that we’ll see a ceasefire before the end of the year. Polymarkets is showing a 38% chance of a ceasefire, well below the peak of 78% seen in March,” ING analysts added.
“The modest price action in the oil market this morning appears to fit with this view.”
Market Concerns Over U.S.-India Tariffs
Investors are also monitoring the impact of additional 25% U.S. tariffs on Indian crude imports from Russia, scheduled to take effect on August 27. Navarro warned that India must cease Russian oil purchases or face further repercussions. Indian refiners, including Indian Oil Corp, have stated they will continue imports if financially feasible.
“To make matters worse, trade talks that were set to take place in late August have reportedly been postponed,” ING analysts said. Market participants are watching diplomatic signals closely to determine whether tensions are easing or escalating further.
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