Oil Prices Slip as Traders Watch Potential Russia-Ukraine-U.S. Peace Talks
Oil prices fell on Tuesday as markets considered the possibility of trilateral talks involving Moscow, Kyiv, and Washington aimed at ending the Ukraine war. Such negotiations could eventually lead to the lifting of sanctions on Russian crude.
Crude Prices Edge Lower
- Brent crude futures slipped 32 cents, or 0.5%, to $66.28 per barrel by 06:50 GMT.
- U.S. West Texas Intermediate (WTI) September futures, due to expire Wednesday, dropped 32 cents, or 0.5%, to $63.10 per barrel.
- The more active October WTI contract was down 30 cents, or 0.5%, at $62.40 per barrel.
Prices had settled about 1% higher in the previous session.
Trump Pushes for Peace Talks
After meeting Ukrainian President Volodymyr Zelenskiy and European allies at the White House, U.S. President Donald Trump announced that he had called Russian President Vladimir Putin. Trump said he is arranging a meeting between Putin and Zelenskiy, followed by a trilateral summit among the three leaders.
Analysts say oil prices are reacting to these developments. According to Suvro Sarkar, lead energy analyst at DBS Bank, while no peace deal is imminent, risks of fresh sanctions from the U.S. or Europe appear to have eased. He added that Trump’s softer stance on secondary sanctions targeting importers of Russian oil reduces the risk of supply disruptions.
Geopolitical Risks Ease Slightly
Zelenskiy described his talks with Trump as “very good” and said they included discussions on U.S. security guarantees for Ukraine. Trump confirmed support but did not specify details.
Still, Kyiv and its allies remain cautious, fearing Trump could push for a deal favoring Moscow.
Bart Melek, head of commodity strategy at TD Securities, said reduced geopolitical tensions could push oil prices lower toward $58 per barrel in late 2025 and early 2026. However, if the U.S. imposes new secondary tariffs on buyers of Russian oil, prices could rebound toward recent highs.
U.S.-India Tensions Add to Pressure
Just two weeks ago, Trump imposed a 25% tariff on Indian goods in response to India’s continued imports of Russian oil. New Delhi criticized the move as unfair and unjustified, accusing Washington of double standards.
