Oil prices fall as investors await US-Russia talks on Ukraine
Oil prices fell in Asian trade on Monday, extending declines of more than 4% last week as investors awaited the outcome of talks between the U.S. and Russia later this week on the war in Ukraine.
Brent crude futures fell 33 cents, or 0.5%, to $66.26 a barrel by 0430 GMT, while U.S. West Texas Intermediate crude futures were down 39 cents at $63.49.
Expectations have risen for a potential end to sanctions that have limited the supply of Russian oil to international markets, after U.S. President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.
The talks follow increased U.S. pressure on Russia, raising the prospect that penalties on Moscow could also be tightened if a peace deal is not reached.
"If peace talks falter and the conflict drags on, the market could quickly pivot to a bullish stance, potentially triggering a sharp rally in oil prices," said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.
Trump set a deadline of last Friday for Russia, which invaded Ukraine in February 2022, to agree to peace or have its oil buyers face secondary sanctions. At the same time, Washington is pressing India to reduce purchases of Russian oil.
Consultancy Energy Aspect estimated Indian refiners have already purchased WTI totalling 5 million barrels for August loadings, with an incremental 5 million barrels possible depending on tender outcomes, and 5 million barrels for September loadings.
WTI arbitrage to Asia remains open, and India looks set to continue absorbing U.S. crude for now, Energy Aspects said in a weekly note.
Trump's higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to weigh on economic activity as they force changes to supply chains and fuel higher inflation.
Dragged down by the gloomy economic outlook, Brent fell 4.4% over the week ended Friday, while WTI dropped 5.1%.
"The near-term direction will hinge on several key events, including the August 15 meeting between the U.S. and Russian presidents, upcoming speeches from Federal Reserve officials, and the release of the U.S. CPI data," said Sachdeva.
Separately, data from the National Bureau of Statistics (NBS) on Saturday showed China's producer prices fell more than expected in July, while consumer prices remained flat, highlighting the extent to which weak domestic demand and ongoing trade uncertainty are weighing on consumer and business sentiment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Shafaq News
2 hours ago
- Shafaq News
US Congressman's visit to Syria: Abraham Accords on table
Shafaq News – Damascus On Monday, US Congressman Abraham Hamadeh met with Syria's transitional president, Ahmad al-Sharaa, in Damascus to discuss efforts toward normalization with Israel and the delivery of aid to Suwayda province. A statement from Hamadeh's media office, indicated that the six-hour meeting focused on humanitarian and political issues, including facilitating medical and humanitarian assistance to Suwayda. The discussions also covered plans to return American activist Kayla Mueller's remains to her family in Arizona. 🇺🇸NEW🇺🇸Congressman Abraham Hamadeh Makes Historic Trip to Syria to Meet with President Ahmed al-SharaaRead Full Press Release⤵️ — Office of Congressman Abe Hamadeh (@RepAbeHamadeh) August 10, 2025 Highlighting the "need for comprehensive security and peace across all Syrian communities," Hamadeh emphasized measures introduced during President Donald Trump's administration aimed at lifting certain sanctions and supporting Syria's reconstruction after years of conflict. Damascus has yet to provide an official response to the meeting's details. This visit follows earlier meetings between Syrian and Israeli officials in Baku and Paris, where both parties explored the possibility of normalizing relations and joining the Abraham Accords.
Shafaq News
3 hours ago
- Shafaq News
Erbil Governor meets families of fuel station shooting victims
Shafaq News – Erbil On Monday, Erbil Governor Omed Khoshnaw met the families of three victims killed in a fuel station shooting, receiving their thanks for his support and calls for justice. The shooting took place last Wednesday on the Erbil–Kasnazan road, when a dispute between two young Arab men and a station worker ended with the worker opening fire with a Kalashnikov, killing both men and fatally wounding a bystander. Police arrested the suspect immediately, classifying the case as a major crime. In a press conference after the meeting, the families said Khoshnaw assured them the investigation would proceed under the law and that the perpetrator would face trial, expressing confidence their loved ones' deaths would not be in vain. One victim's father praised the Kurdistan Regional Government's response, saying it demonstrated unity and equality before the law.
Shafaq News
4 hours ago
- Shafaq News
Iraq's May public spending, domestic debt edge down
Shafaq News – Baghdad Iraq's public spending and domestic debt both declined in May, according to Central Bank of Iraq (CBI) data released on Monday. Public expenditure stood at 9.35T IQD ($6.67B), down 1.48% from April's 9.49T IQD ($6.77B) and 12.4% lower than the 10.68T IQD ($7.61B) recorded in May 2024. Domestic public debt fell marginally to 85.50T IQD ($60.95B) from 85.54T IQD ($60.98B) in April, but was up 8.56% year-on-year from 78.18T IQD ($55.70B) in May 2024. According to data from Trading Economics, Iraq's government debt is expected to reach around 44% of GDP by the end of 2025 amid volatile oil revenues. Oil revenues still account for around 85% of the government budget and over 90% of export earnings, making Iraq highly sensitive to international price fluctuations.
