Oil settled nearly $1 lower as Trump-Putin talks loom

Written by Arate Somasekhar

Houston (Reuters) -Oil prices were closed about one dollar on Friday as merchants are waiting for talks between US president Donald Trump and Russian leader Vladimir Putin, which may reduce the sanctions imposed on Moscow about the war in Ukraine.

Brent Future 99 cents, or 1.5 %, settled at $ 65.85 a barrel, while raw intermediary contracts in West Texas have declined $ 1.16, or 1.8 %, lower at $ 62.80.

Trump arrived in Alaska on Friday for his pen with Putin after he said he wanted to see the ceasefire in the war in Ukraine “today”.

Trump said he believed Russia is ready to end the war, but he also threatened to impose secondary sanctions on countries that buy Russian oil if there is no progress in peace talks.

Putin also arrived at Ancorag. Interfax told Russia that Carmelin Dmitry Peskov spokesman expected the talks to achieve results.

“Trump is likely to threaten more pressure on India on India and perhaps China as much as oil imports from Russia if the stalemate meeting, which maintains a neurological trade,” said Dennis Kisler, Senior Vice President of Trading in Bok Financial.

“If a ceasefire declaration is issued, it will be considered negative for crude in the short term,” Kisler added.

For the week, WTI decreased by 1.7 %, while Brent reduces 1.1 %.

Meanwhile, the weakest economic data than China has raised fears about fuel demand.

Chinese government data showed that the growth of factory production decreased to a decrease for eight months and the growth of retail sales has expanded the slowest pace of it since December, which increases the morale despite the productivity of the strongest oil in the second largest raw user in the world.

Productivity in Chinese refineries increased by 8.9 % on an annual basis in July, but this decreased from June levels, which was the highest since September 2023. Despite the increase, oil products exports in China also increased last month from last year, indicating a decrease in demand for local fuel.

Also, the increasing surplus expectations in the oil market in the oil market were weighing feelings, as did the possibility of high interest rates in the United States.

Baker Hughes data showed that the oil platform index, an indicator of future supply, rose by one to 412 this week.

On Thursday, Bank of America analysts said that they are directing their expectations for the oil market surplus, noting the increasing supplies of the OPEC+ Producer Group, which includes the organization of oil exporting countries, Russia and other allies.

Analysts are now displaying an average surplus of 890,000 barrels per day from July 2025 to June 2026.