Oil Prices Extend Losses Ahead of U.S.-Russia Peace Talks
Oil prices fell in Asian trading on Monday, extending last week’s losses of more than 4%. Traders are watching for the outcome of U.S.-Russia peace talks later this week on the war in Ukraine.
By 06:31 GMT, Brent crude futures slipped 62 cents, or 0.93%, to $65.97 a barrel. U.S. West Texas Intermediate (WTI) crude dropped 69 cents, or 1.08%, to $63.19.
Hopes for End to Sanctions on Russian Oil
Expectations are rising for a possible end to sanctions restricting Russian oil exports. On Friday, U.S. President Donald Trump confirmed he will meet Russian President Vladimir Putin on August 15 in Alaska to negotiate a peace deal.
These talks come amid increased U.S. pressure on Russia, with Washington warning that penalties could tighten if no agreement is reached. Trump also set a deadline last Friday for Russia to commit to peace or face secondary sanctions on its oil buyers.
India’s Role in Oil Trade
The U.S. has urged India to scale back Russian oil imports. However, consultancy Energy Aspects estimates Indian refiners have already purchased 5 million barrels of WTI for August loadings, with another 5 million possible depending on tender results. For September loadings, purchases could reach 5 million barrels as well.
WTI’s pricing advantage keeps the arbitrage window to Asia open, making U.S. crude shipments to India likely in the near term.
Broader Economic Pressures
Trump’s recent tariff hikes on imports from dozens of countries, effective Thursday, are expected to disrupt supply chains, slow economic activity, and push inflation higher.
Last week, Brent crude fell 4.4% while WTI dropped 5.1%, weighed down by a gloomy economic outlook.
“The near-term oil price direction will depend on several key events,” said Sugandha Sachdeva, founder of SS WealthStreet. “These include the August 15 U.S.-Russia meeting, speeches from Federal Reserve officials, and the upcoming U.S. CPI data.”
Weak Economic Signals from China
Adding to bearish sentiment, data from China’s National Bureau of Statistics showed producer prices fell more than expected in July. Consumer prices were flat, underscoring weak domestic demand and the negative impact of ongoing trade uncertainty on both consumers and businesses.
