Oil Prices Fall on Prospects of Russia-Ukraine-U.S. Talks
Oil prices dipped on Tuesday as traders weighed the possibility that ongoing talks between Russia, Ukraine, and the United States could ease geopolitical tensions and potentially lift sanctions on Russian crude, adding supply to global markets.
Brent crude futures were down by 82 cents (1.23%) at $65.78 per barrel as of 10:54 GMT. U.S. West Texas Intermediate (WTI) September contracts, which expire Wednesday, slid 86 cents (1.36%) to $62.56 per barrel. The more actively traded October WTI contract also declined 82 cents (1.31%) to $61.88.
The drop followed a White House meeting between U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders. Trump later confirmed via social media that he had spoken with Russian President Vladimir Putin, signalling plans for a potential meeting involving all three leaders.
“Following yesterday’s meeting between Trump, Ukrainian President Zelenskiy, and several European heads of state and government, there appears to be movement in the negotiations, fuelling renewed hopes for an upcoming end to the war. As a result, oil prices are falling again today,” Commerzbank analysts wrote.
According to Suvro Sarkar, lead energy analyst at DBS Bank, Trump’s more flexible approach to secondary sanctions on Russian oil buyers has eased fears of severe global supply disruptions, calming the market.
Zelenskiy described his talks with Trump as “very good,” highlighting discussions on potential U.S. security guarantees. Trump confirmed such guarantees would be provided, though their scope remains uncertain.
Despite Trump’s push for a swift end to the conflict, Kyiv and Western allies remain wary that Washington could lean toward terms favourable to Moscow.
“An outcome which would see a ratcheting down of tensions and remove threats of secondary tariffs or sanctions would see oil drift lower toward our $58 per barrel Q4-25/Q1-26 average target,” Bart Melek, TD Securities’ head of commodity strategy, said.
