Oil Prices Hold Firm Ahead of Trump-Putin Meeting
Oil prices remained steady during Asian trading hours on Friday, following sharp gains in the previous session. Markets focused on how an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin could impact global crude supply.
At 22:34 ET (02:34 GMT), Brent crude futures for October dipped 0.1% to $66.79 per barrel, while West Texas Intermediate (WTI) futures held flat at $63.00 per barrel. Both benchmarks surged nearly 2% on Thursday but remained on track for a flat weekly close.
Trump-Putin Alaska Summit in Focus
Trump and Putin are scheduled to meet in Alaska on Friday to discuss potential ceasefire terms with Ukraine. Earlier this week, Trump warned of “severe consequences” if Putin refused peace terms. He also threatened steep tariffs on major buyers of Russian oil, including India and China.
If the U.S. follows through on these threats or imposes new restrictions on Russia’s energy sector, global oil supply could tighten further, driving crude prices higher. Analysts warn that tougher curbs on Moscow’s oil exports would deepen existing supply constraints, especially in Europe and Asia, where reliance on Russian crude remains high.
Conversely, easing sanctions or offering partial relief in exchange for concessions from Moscow could push prices lower.
Fed Cut Bets Ease After Hot U.S. PPI
Oil gains were tempered by U.S. producer price index (PPI) data, which came in hotter than expected. The stronger inflation reading reduced the likelihood of an aggressive Federal Reserve rate cut next month.
Markets still expect a 25 basis point cut in September, but the odds have slipped from near certainty. Expectations for a 50 basis point cut have diminished sharply.
Japan GDP and China Data in Spotlight
Japan’s economy grew faster than expected in Q2, supported by resilient exports and capital spending despite U.S. tariff pressure. The results may strengthen the case for the Bank of Japan to consider further monetary tightening.
In China, July industrial production missed expectations as overseas demand weakened after earlier front-loading ahead of U.S. tariffs. Retail sales also fell short, highlighting ongoing weakness in consumer spending.
