Oil markets bearish after Alaska summit
Oil markets are set for a muted price reaction when they open on Sunday after US President Donald Trump's and Russian leader Vladimir Putin's meeting in Alaska, at which Trump said a fully-fledged peace deal was the aim for Ukraine rather than a ceasefire.
Trump said he had agreed with Putin that negotiators should go straight to a peace settlement – not via a ceasefire, as Ukraine and European allies, until now with US support, have been demanding. Trump said he would hold off imposing tariffs on countries such as China for buying Russian oil following his talks with Putin.
He has previously threatened sanctions on Moscow and secondary sanctions on countries such as China and India that buy Russian oil if no moves are made to end the Ukraine war.
"This will mean Russian oil will continue to flow undisturbed and this should be bearish for oil prices," said ICIS analyst Ajay Parmar. "It is worth noting that we think the impact of this will be minimal though and prices will likely see only a small dip in the very near term as a result of this news."
The oil market will wait for developments from a meeting in Washington on Monday between Trump and Ukrainian President Volodymyr Zelenskiy. European leaders have also been invited to the meeting, a source familiar with the matter told Reuters. "Market participants will track comments from European leaders but for now Russian supply disruption risks will remain contained," said Giovanni Staunovo, analyst at UBS.
Brent settled at $65.85 a barrel on Friday, and US West Texas Intermediate at $62.80 - both down nearly $1 before the talks in Alaska.
Traders are waiting for a deal, so until that emerges, crude prices are likely to be stuck in a narrow range, said Phil Flynn, a senior analyst with Price Futures Group.
"What we do know is that the threat of immediate sanctions on Russia, or secondary sanctions on other countries is put on hold for now, which would be bearish," he said.
After the imposition of Western sanctions, including a seaborne oil embargo and price caps on Russian oil, Russia has redirected flows to China and India.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
5 hours ago
- Express Tribune
Over 300 protests held across US against Trump's Texas redistricting push
A protester raises a sign during one of the Fight the Trump Takeover nationwide rallies against Texas' Republicans efforts to redraw the state's 38 congressional districts, at the State Capitol in Austin, Texas, US August 16, REUTERS Pro-democracy activists and labor groups held hundreds of rallies and other events across the United States on Saturday protesting the Trump administration's push for Texas to redraw its congressional map in favor of Republicans. Former Congressman Beto O'Rourke was among those who spoke on Saturday in Texas, from which dozens of Democratic state lawmakers fled to deny Republicans the quorum needed to vote on a redistricting plan that President Donald Trump had demanded. "They do this because they are afraid," O'Rourke told an audience on Saturday, speaking of those attempting redistricting. "They fear this power they see here today." Read More: Trump-Putin summit Drucilla Tigner, executive director of pro-democracy coalition Texas For All, told Reuters pro-democracy and labor groups held over 300 events attended by tens of thousands of people in 44 states and Washington, DC. Many of the more than 50 Texas Democrats who fled the state have been staying in Illinois, also the site of protests on Saturday. The Texas lawmakers in Illinois are out of reach of civil arrest warrants that could be acted on within Texas. The Texas Democrats kept the map from coming to a vote during a special session Governor Greg Abbott called that ended Friday. Abbott immediately called a second special session. Abbott said that redistricting plans, legislation to increase flash flood safety in the wake of deadly July flooding, and other legislative work remains undone because Democrats are absent. Also Read: Ukraine peace at stake as Trump hosts Putin California's Democratic Governor Gavin Newsom on Thursday unveiled a redistricting plan in his state that he says would give Democrats there five more Congressional seats, possibly offsetting any Republican gains in Texas. The Texas House Democrats said in a written statement on Thursday that they will only return to Texas if their state's special legislation is ended and once California's redistricting maps were introduced.
Business Recorder
6 hours ago
- Business Recorder
US envoy Witkoff ‘hopeful' for ‘productive' meeting on Ukraine conflict on Monday
WASHINGTON: US President Donald Trump and his Russian counterpart Vladimir Putin agreed to 'robust security guarantees' for Ukraine during their high-stakes summit in Alaska, a top White House envoy said Sunday, adding that he was hopeful for a 'productive meeting' with Ukrainian President Volodymyr Zelensky and European leaders the next day. Speaking on CNN, Steve Witkoff added that Russia had agreed to unspecified concessions on five Ukrainian regions central to the fighting, particularly the eastern Donetsk province. 'We agreed to robust security guarantees that I would describe as game-changing,' Witkoff said. He added: 'The Russians made some concessions at the table with regard to all five of those regions. There is an important discussion with regard to Donetsk and what would happen there. And that discussion is going to specifically be detailed on Monday.' Trump says Ukraine needs to make a deal after summit with Putin ends without ceasefire Trump on Monday will be hosting Zelensky and a number of European leaders to discuss ways to end Russia's three-and-a-half-year invasion of its neighbor. The preparations come after Trump dropped his push for a ceasefire following the Alaska summit with Putin, something that had been one of Washington's core demands before the summit, to which Ukraine and its European allies were not invited. US Secretary of State Marco Rubio said on NBC Sunday that a ceasefire 'is not off the table,' but 'what we ultimately are aiming for is an end to this war.' In a brief post on his Truth Social platform, Trump hailed 'BIG PROGRESS ON RUSSIA,' without elaborating. The leaders heading to Washington on Monday to try and bend Trump's ear on the matter include British Prime Minister Keir Starmer, French President Emmanuel Macron, German Chancellor Friedrich Merz and NATO Secretary-General Mark Rutte, among others.
Business Recorder
6 hours ago
- Business Recorder
Russia will not give Ukraine security guarantee: Zelensky
BRUSSELS: Ukraine leader Volodymyr Zelensky on Sunday rejected the idea of Russia offering his country security guarantees, after US and EU officials promoted the possibility. White House envoy Steve Witkoff earlier said US President Donald Trump and his Russian counterpart Vladimir Putin agreed to 'robust security guarantees' for Ukraine during a meeting in Alaska on Friday. EU chief Ursula von der Leyen on Sunday hailed the proposal as an offer of NATO-style security guarantees from the United States. 'We welcome President Trump's willingness to contribute to (NATO) Article 5-like security guarantees for Ukraine, and the coalition of the willing, including the European Union, is ready to do its share,' von der Leyen said. Ukraine drone attack injures train station employee in Russia's Voronezh, governor says Zelensky also welcomed the idea of US security guarantees – but was less positive about Russia's intentions. 'What President Trump said about security guarantees is much more important to me than Putin's thoughts, because Putin will not give any security guarantees,' he told a press conference in Brussels alongside von der Leyen. 'Security means a strong army, which only Ukraine can provide. I believe that only Europe can finance this army.' Von der Leyen and Zelensky also shared their thoughts on a possible meeting between Trump, Putin and the Ukrainian leader. 'So far, Russia gives no sign that the trilateral will happen and if Russia refuses, then new sanctions must follow,' Zelensky said. Von der Leyen had said she wanted to see the three-way meeting happen 'as soon as possible'. Zelensky will meet Trump in Washington on Monday, accompanied by von der Leyen and other European leaders.
