Oil Prices Sink to 5-Month Lows Ahead of Trump-Putin Summit
Oil prices dropped to their lowest level in five months on Friday, extending weekly losses as markets reacted to news that U.S. President Donald Trump and Russian President Vladimir Putin plan to meet soon to discuss a potential end to the Ukraine war.
Crude Under Pressure from Weak Demand and Rising Supply
Oil futures fell amid worries over sluggish global demand, a potential supply glut, and a larger-than-expected build in U.S. inventories.
By 21:14 ET (01:14 GMT), Brent crude futures slipped 0.2% to $60.95 per barrel, while West Texas Intermediate (WTI) declined 0.2% to $57.36 — both at their lowest levels since early May.
Trump and Putin to Meet in Hungary
Trump confirmed on Thursday that he and Putin agreed to hold talks in Budapest to discuss possible steps toward ending the war in Ukraine. The meeting — their second since the August summit in Alaska — comes just before Trump’s planned conversation with Ukrainian President Volodymyr Zelensky.
Analysts noted that any progress toward a Russia-Ukraine ceasefire could weigh further on oil prices, as easing U.S. sanctions might enable increased Russian oil exports.
At the same time, Kyiv’s reduced strikes on Russian oil infrastructure could signal fewer global supply disruptions — another bearish factor for crude.
Still, traders remain cautious, recalling that previous Trump-Putin talks produced little tangible progress toward peace.
Oil Faces Third Straight Weekly Decline
Both Brent and WTI futures were down between 2.5% and 2.9% for the week, heading for a third consecutive weekly loss. Prices reversed short-lived gains on Thursday after U.S. government data showed inventories rising by 3.5 million barrels, far above forecasts.
Although gasoline and distillate stockpiles declined, the overall build fueled doubts about winter fuel demand.
Adding to pressure, weak Chinese economic data and escalating U.S.-China trade tensions dampened global growth sentiment.
IEA Warns of Oversupply Risks
The International Energy Agency (IEA) warned this week of a larger supply overhang expected by 2026, alongside deteriorating global demand trends.
Oil prices briefly found support after Trump claimed India would halt Russian oil purchases, but Indian officials provided no confirmation or details.
