Oil settled nearly $1 lower as Trump-Putin talks loom
Brent crude futures settled 99 cents, or 1.5%, lower at $65.85 a barrel, while U.S. West Texas Intermediate crude futures eased $1.16, or 1.8%, lower at $62.80.
Trump arrived in Alaska on Friday for his summit with Putin after saying he wants to see a ceasefire in the war in Ukraine "today."
Trump has said he believes Russia is prepared to end the war, but he has also threatened to impose secondary sanctions on countries that buy Russian oil if there is no progress with peace talks.
Putin also arrived in Anchorage. Kremlin spokesman Dmitry Peskov said Russia expects the talks to bring results, Russia's Interfax news agency reported.
"President Trump will likely threaten further tariff pressure on India and possibly China as far as oil imports from Russia if the meeting stalemates, which is keeping a nervous trade to crude," said Dennis Kissler, senior vice president of trading at BOK Financial.
"If a ceasefire announcement is made, it will be taken as a negative to crude near-term," Kissler added.
For the week, WTI dropped 1.7%, while Brent eased 1.1%.
Weaker economic data from China, meanwhile, raised concerns over fuel demand.
Chinese government data showed factory output growth slumped to an eight-month low and retail sales growth expanded at its slowest pace since December, weighing on sentiment despite stronger oil throughput in the world's second-largest crude user.
Throughput at Chinese refineries rose 8.9% year-on-year in July, but that was down from June levels, which were the highest since September 2023. Despite the increase, China's oil product exports last month were also up from a year ago, suggesting lower domestic fuel demand.
Forecasts of a growing oil market surplus also weighed on sentiment, as did the prospect of higher-for-longer U.S. interest rates.
Oil rig count, an indicator of future supply, rose by one to 412 this week, Baker Hughes data showed.
Bank of America analysts said on Thursday that they were widening their forecast for the oil market surplus, citing growing supplies from the OPEC+ producer group comprising the Organization of the Petroleum Exporting Countries, Russia and other allies.
The analysts now project an average surplus of 890,000 barrels per day from July 2025 through June 2026.
That forecast follows this week's International Energy Agency predictions saying the oil market looks "bloated" after the latest increases to OPEC+ output.
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Reuters
19 minutes ago
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Ukraine says it presses Russian troops back on part of Sumy front
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BBC News
19 minutes ago
- BBC News
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Telegraph
19 minutes ago
- Telegraph
Trump ‘played into Putin's hands'
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Olena and Yuriy, a couple who lost their son in the war, said they watched the Alaska summit unfold on television and were sickened by images of the Russian leader responsible for the invasion being welcomed on a red carpet. They spoke to The Telegraph as they put up a photograph of their son on the memorial wall of fallen soldiers at Saint Michael Square. 'The soldiers of the United States of America were unrolling this red carpet before Putin,' Yuriy said. 'For what reason is a person given such respect, who actually invaded our country?' In a nearby café, the events in Alaska were the topic of the day. 'We are supposed to be allies,' said Yevgheny Sofychuk, 39, who was getting a coffee during his morning dog walk. 'They behaved in a way that suggests they [Russia] are better.' The barista interrupts, 'All I want to say is that Trump is a chicken.' 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He added that with so much mixed messaging, it is hard to know whether Ukraine still has any 'cards' to play. 'If it's really bad and we are not in a position to choose or decide, then why should they ask us anyway? But if we still have some cards, then why not bargain for a bit longer?' Standing beside Serhii was a friend, pale-faced and silent. He refused to give his name or comment, explaining only that he has just returned from Russian captivity and the subject was too sensitive. Back at the memorial wall of heroes, the photograph of Olena and Yuriy's son now fills a once-empty space. The wall runs the length of a city block, with large sections of blue plaster still bare — spaces that could yet be filled if Ukraine continues the fight. 'Even if Trump stops all this weapons support,' said his father, Yuriy, 'we Ukrainians, those who care about our future, will be standing up to the very end.'
