Oil settles nearly US$1 lower as Trump-Putin talks loom
Brent crude futures settled 99 US cents, or 1.5 per cent, lower at US$65.85 a barrel, while US West Texas Intermediate (WTI) crude futures eased US$1.16, or 1.8 per cent, lower at US$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 spokesperson 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.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
For the week, WTI dropped 1.7 per cent, while Brent eased 1.1 per cent.
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 per cent 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 earlier, suggesting lower domestic fuel demand.
Forecasts of a growing oil market surplus also weighed on sentiment, as did the prospect of higher-for-longer US 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. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
an hour ago
- Straits Times
‘Maybe it will end': Russians welcome Putin-Trump summit
Sign up now: Get ST's newsletters delivered to your inbox US President Donald Trump and Russia's leader Vladimir Putin met on Aug 15 for a summit that observers say ended inconclusively. MOSCOW – Russian pensioner Lyudmila said she was glued to the coverage of Mr Vladimir Putin's trip to Alaska on Aug 15 for talks with Mr Donald Trump on Ukraine. The visit – unthinkable just a few weeks ago – brought the longtime Russian leader out of more than three years of Western isolation for his Ukraine offensive. For Lyudmila, 73, like for many Russians, it was impressive, and she hoped that a deal to end the fighting was nigh. She placed her faith in Mr Trump. 'I am sure, absolutely sure, they will reach an agreement because Trump… is not stupid,' Lyudmila said. 'He understands our country has greatness and status,' she said, beaming. The US leader gave a red carpet welcome to Mr Putin, who appeared to make no concessions to his maximalist demands on Ukraine. Top stories Swipe. Select. Stay informed. Singapore Over 280 vapes seized, more than 640 people checked by police, HSA in anti-vape raids at nightspots Singapore SPLRT disruption: 28km of cables to be tested during off-service hours; works to end by Aug 23 Singapore First-half GDP boost likely temporary; Republic must stay relevant amid challenges: Chan Chun Sing Life Six-figure sales each durian season: Why S'pore durian sellers are now live selling on TikTok Singapore Airport-bound public bus to be fitted with luggage rack in 3-month trial: LTA Singapore 3 truck drivers injured after chain collision on ECP, including one rescued with hydraulic tools Life Meet the tutors who take O-level exams every year to create a 'war mate' bond with their students Life Pivot or perish: How Singapore restaurants are giving diners what they want Mr Putin looked confident in Alaska and, in a rare switch to English, even invited Mr Trump to Russia, saying: 'Next time, in Moscow.' Lyudmila and other Muscovites said they hoped it would happen. 'We are waiting for it. We invite you!' she said. 'Everyone wants it' Russian television had round-the-clock coverage of Mr Putin's trip, which many Russians saw as a major diplomatic victory. But while Russians can now picture Mr Putin negotiating with Mr Trump, they struggle to see him at a table with European leaders. For Alexander, a teacher at an aviation institute, Moscow could find common ground with Mr Trump, but not with EU leaders. Ukraine and its European allies, who were not invited to the Alaska summit, fear that Moscow and Washington will strike a deal without them. The Kremlin has long painted Kyiv's allies in Europe as an obstacle to peace and does not have open communication channels with many of those countries. 'They will not change their position,' 39-year-old Alexander said, welcoming the dialogue with Mr Trump but warning 'it will be a little harder with the Europeans'. Vadim, a 35-year-old agriculture specialist, accused European leaders of being 'hysterical' about the summit. He had high hopes for a reset in US-Russian relations. 'I really want to believe in this,' he said, adding that 'everyone wants it'. Russia has been living under massive Western sanctions for its Ukraine offensive. 'Maybe, just maybe' After more than three years of conflict, with both sides suffering huge military losses, many Muscovites saw an opening to end the fighting, hoping it will be in Russia's favour. 'There is hope that something will go in the better direction, in favour of Russia, of the nation and the people who are fighting, and maybe it will all end,' museum worker Vitaly Romanov said. 'Maybe, just maybe… But it's not for sure,' he added. But for others, the Trump-Putin summit only brought another unpredictable turn in the dragging conflict. 'It's very hard to say how this will end,' Yelena, a 36-year-old accountant, said. AFP
Straits Times
an hour ago
- Straits Times
US proposed Nato-style joint defence guarantees for Ukraine, says Italy's premier
Sign up now: Get ST's newsletters delivered to your inbox Italian Prime Minister Giorgia Meloni has been proposing a security guarantee for Ukraine 'inspired' by Nato's Article 5. KYIV – The United States has proposed security guarantees for Ukraine similar to – but separate from – the collective defence agreement between Nato member countries, according to Italy's prime minister and a diplomatic source. The suggestion was raised during a call US President Donald Trump held with Ukrainian President Volodymyr Zelensky and European leaders on Aug 16, the day after Mr Trump's summit with Russia's Vladimir Putin . 'As one of the security guarantees for Ukraine, the American side proposed a non-Nato Article 5 type guarantee, supposedly agreed with Putin,' the diplomatic source said on condition they not be identified in any way. Nato's collective security is based on its Article 5 principle: If one member is attacked, the entire alliance comes to its defence. Italian Prime Minister Giorgia Meloni, who was on the call with Mr Trump, confirmed the US president raised the idea of security guarantee 'inspired' by Article 5, which she has been pushing for several months. The starting point for the proposal was defining a collective security clause 'that would allow Ukraine to benefit from the support of all its partners, including the US, (which would be) ready to act in case it is attacked again', Ms Meloni said in a statement. In March, Ms Meloni told Italian senators that any such response would not necessarily involve going to war. Top stories Swipe. Select. Stay informed. Singapore Over 280 vapes seized, more than 640 people checked by police, HSA in anti-vape raids at nightspots Singapore SPLRT disruption: 28km of cables to be tested during off-service hours, to be completed by Aug 23 Singapore First-half GDP boost likely temporary; Republic must stay relevant amid challenges: Chan Chun Sing Life Six-figure sales each durian season: Why S'pore durian sellers are now live selling on TikTok Singapore Airport-bound public bus to be fitted with luggage rack in 3-month trial: LTA Singapore 3 truck drivers injured after chain collision on ECP, including one rescued with hydraulic tools Life Meet the tutors who take O-level exams every year to create a 'war mate' bond with their students Life Pivot or perish: How Singapore restaurants are giving diners what they want She noted that, while Nato's Article 5 has the use of force as an option, 'it is not the only possible option'. Kyiv has long aspired to join Nato, but Russia has given that as one of its reasons for its war in Ukraine, and some Western circles have expressed resistance to the idea. Mr Trump has repeatedly ruled out Ukraine joining the Western military alliance. Before his joint call with Mr Zelensky and European leaders, Mr Trump spoke just with the Ukrainian president about the Alaska summit on Aug 15. 'The American side voiced this (joint security proposal) during a conversation with the president (Zelensky) and then repeated it during a joint conversation with the Europeans,' the diplomatic source said. Another source with knowledge of the matter confirmed the Nato-like guarantees was discussed. But that source added: 'No-one knows how this could work and why Putin would agree to it if he is categorically against Nato and obviously against really effective guarantees of Ukraine's sovereignty.' Ms Meloni's statement made no mention of whether the idea was discussed with Mr Putin. Mr Zelensky is due in Washington on Aug 18 for talks with Mr Trump. The second source said Mr Zelensky is to discuss what form a possible Trump-Putin-Zelensky summit would have, the role of Kyiv's European allies in peace talks, territories and security guarantees. AFP
Straits Times
2 hours ago
- Straits Times
Ukrainians see ‘nothing' good from Trump-Putin meeting, call it ‘useless'
Sign up now: Get ST's newsletters delivered to your inbox Ukrainians at a rally in New York on Aug 15 ahead of US President Donald Trump's meeting with his Russian counterpart, Mr Vladimir Putin. KYIV – Mr Pavlo Nebroev stayed up until the middle of the night in Ukraine's north-eastern city of Kharkiv to wait for a news conference between Mr Donald Trump and Mr Vladimir Putin thousands of kilometres away. The US and Russian leaders met in Alaska on Aug 15 to discuss Russia's more than three-year invasion of his country. But they made no breakthrough and, seen from Kharkiv – heavily attacked by Russia throughout the war – the red-carpet meeting looked like a clear win for Mr Putin. 'I saw the results I expected. I think this is a great diplomatic victory for Putin,' Mr Nebroev, a 38-year-old theatre manager, said. 'He has completely legitimised himself.' Mr Trump inviting Mr Putin to the US ended the West's shunning of the Russian leader since the 2022 invasion. Ukraine's leader, Mr Volodymyr Zelensky, who was not invited, described the trip as Mr Putin's 'personal victory'. Mr Nebroev, like many Ukrainians, was gobsmacked the meeting could take place without representatives of his country. 'Useless' 'This was a useless meeting,' he said, adding: 'Issues concerning Ukraine should be resolved with Ukraine, with the participation of Ukrainians, the president.' Mr Trump later briefed European leaders and Mr Zelensky, who announced he would meet the US leader in Washington on Aug 18. The Trump-Putin meeting ended without a deal, and Mr Trump took no questions from reporters, highly unusual for the media-savvy US president. Ms Olya Donik, 36, said she was not surprised by the turn of events as she walked through a sunny park in Kharkiv with Mr Nebroev. 'It ended with nothing. All right, let's continue living our lives here in Ukraine,' she said. Hours after the talks, Kyiv said Russia attacked with 85 drones and a ballistic missile at night. 'Whether there are talks or not, Kharkiv is being shelled almost every day. Kharkiv definitely doesn't feel any change,' said Ms Iryna Derkach, a 50-year-old photographer. She stopped for the daily minute of silence held across the country to honour the victims of the Russian invasion. 'We believe in victory, we know it will come, but God only knows who exactly will bring it about,' she said. 'Pouring water' Ms Derkach, like many Ukrainians, was suspicious of Mr Trump. 'We do our job and don't pay too much attention to what Trump is doing,' she added. In Kyiv, 30-year-old cosplayer Kateryna Fuchenko, also worried that the American president was not a real ally of Ukraine. 'I don't think he is for Ukraine,' she said, criticising Mr Trump for acting as if he was 'buddies' with Mr Putin. 'They just poured water from empty to empty, back and forth, as always,' she said, characterising the talks as meaningless, doubting they achieved 'anything'. Kyiv pensioner Volodymyr Yanukovych said he expected Russia to 'fire as they fired' on Ukraine's capital, which has seen a number of deadly attacks this summer. Pharmacist Larysa Melnyk did not think her country was any closer to seeing peace. 'I don't think there will be a truce,' she said, adding that even if the guns fall silent, it will only be temporarily. Russia has historically 'unleashed such major conflicts', the 25-year-old said, pointing to the 2008 war in Georgia. She asked: 'Why does nobody react to this?' AFP
