Oil Prices Ease as Trump, Putin Signal Push for Peace Deal
Global oil prices edged lower on Monday as traders weighed geopolitical developments and U.S. monetary policy signals.
Brent crude slipped 26 cents, or 0.39%, to $65.59 a barrel by 0028 GMT, while U.S. West Texas Intermediate (WTI) crude fell 18 cents, or 0.29%, to $62.62.
The dip followed U.S. President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday, where both leaders appeared more aligned on pursuing a swift peace deal rather than first settling on a ceasefire in Ukraine. Trump is set to meet Ukrainian President Volodymyr Zelenskiy and key European leaders on Monday in an attempt to end what has become Europe’s deadliest war in eight decades.
Trump also played down the prospect of immediate retaliatory tariffs on countries such as China, which continue to purchase Russian oil. He hinted, however, that such measures could be reconsidered “in two or three weeks” if necessary. The comments eased market concerns over potential disruptions to Russian supply.
China, the world’s top oil importer, remains the largest buyer of Russian crude, followed by India.
Analysts say Trump’s decision effectively pauses pressure on major Russian energy buyers, at least for now. “The status quo remains largely intact,” said Helima Croft of RBC Capital, noting that while Moscow is unlikely to soften its territorial demands, Ukraine and several European leaders are expected to resist any land-for-peace compromise.
Beyond geopolitics, markets are also looking to signals from the U.S. Federal Reserve. Chairman Jerome Powell is due to speak at the Jackson Hole symposium this week, with investors searching for clues on the Fed’s path toward interest rate cuts.
“Powell is likely to stay cautious and data-dependent, especially with one more payroll and inflation report ahead of the September 17th Fed meeting,” said Tony Sycamore, market analyst at IG.
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