Oil Prices Decline as Markets Await U.S.–Russia Talks on Ukraine
Oil prices fell on Monday, extending last week’s losses of more than 4%, pressured by higher U.S. tariffs on key trading partners, rising OPEC output, and growing expectations of a potential ceasefire agreement between the United States and Russia over the war in Ukraine.
Brent crude futures dropped 0.6% to $66.18 per barrel, while U.S. West Texas Intermediate (WTI) futures slid 0.7% to $63.40 per barrel, according to CNBC.
Market sentiment was weighed by speculation that sanctions limiting Russian oil supplies to global markets could soon be lifted, after U.S. President Donald Trump announced on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to the conflict.
The White House has intensified its pressure on Moscow, with Trump warning that failure to reach a peace deal would result in secondary sanctions on countries importing Russian oil. He has also urged India to scale back its purchases of Russian crude.
Beyond geopolitical developments, traders are watching U.S. inflation data due Tuesday, which analysts expect to be a key driver for oil prices this week.
Tony Sycamore, market analyst at IG, said in a note:
> “A softer Consumer Price Index reading could reinforce expectations for an early and significant interest rate cut by the Federal Reserve, potentially stimulating economic activity and boosting crude demand. Conversely, a stronger reading may raise concerns about stagflation and undermine rate-cut expectations.”
Amid ongoing economic uncertainty, Brent crude fell 4.4% last week, while WTI posted a weekly drop of 5.1%.