Oil prices dip as markets eye potential Russia-Ukraine peace talks
Oil prices slipped on Tuesday as traders weighed the possibility of trilateral talks between Moscow, Kyiv, and Washington aimed at ending the war in Ukraine, a development that could ease sanctions on Russian crude.
Brent crude futures fell 32 cents, or 0.5%, to $66.28 a barrel, while U.S. West Texas Intermediate (WTI) September contracts declined 32 cents, or 0.5%, to $63.10 per barrel. The more active October WTI contract was down 30 cents, or 0.5%, at $62.40 a barrel. Prices had risen about 1% in the previous session, News.Az reports, citing Reuters.
The market reacted after U.S. President Donald Trump met Ukrainian President Volodymyr Zelenskyy and European leaders at the White House on Monday. Trump confirmed he had spoken with Russian President Vladimir Putin and was arranging a meeting between Putin and Zelenskyy, to be followed by a trilateral summit.
Suvro Sarkar, lead energy analyst at DBS Bank, said, “Oil prices are largely responding to outcomes of recent meetings. While no outright peace deal or ceasefire seems imminent, some progress has been made. The likelihood of further escalation or additional sanctions on Russian oil appears reduced for now.”
Zelenskyy described his discussions with Trump as “very good,” focusing on Ukraine’s need for U.S. security guarantees. Trump affirmed that the U.S. would provide support, though details remain unclear.
Market strategists noted that a reduction in tensions could push oil toward $58 per barrel in late 2025 and early 2026. Conversely, any renewed pressure on Russia, including broader tariffs on its oil exports, could drive prices higher, echoing levels seen weeks ago. Two weeks ago, the U.S. imposed a 25% tariff on Indian imports in response to continued purchases of Russian oil, a move New Delhi criticized as unfair and unjustified.
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