Oil prices slipped on Monday following losses of over 4 percent last week as investors looked ahead to upcoming U.S.-Russia talks on the war in Ukraine.
As of 5:02 GMT, Brent crude futures dipped 0.57 percent to $66.21 a barrel, while U.S. West Texas Intermediate crude declined 0.72 percent to $63.42 a barrel. Brent declined more than 4 percent last week, while WTI fell more than 5 percent.
Market eyes U.S.-Russia talks
Expectations for a possible end to sanctions restricting Russian oil exports have grown after U.S. President Donald Trump announced on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate a resolution to the war in Ukraine.
The meeting comes amid heightened U.S. pressure on Russia, with the possibility that sanctions could be further tightened if no peace agreement is reached. If negotiations fail and the conflict persists, markets may swiftly shift to a bullish outlook, potentially sparking a sharp rebound in oil prices.
Trump gave Russia, which launched its invasion of Ukraine in February 2022, a deadline of last Friday to agree to a peace deal or see its oil buyers hit with secondary sanctions. Washington is also urging India to scale back its imports of Russian oil.
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Trump’s tariffs impact demand outlook
Trump’s higher tariffs on imports from several countries, which took effect on Thursday, are expected to dampen economic activity by disrupting supply chains and adding to inflationary pressures. Weighed down by the weaker economic outlook, Brent crude lost 4.4 percent last week, while WTI fell 5.1 percent.
In the short term, oil prices will largely be impacted by several major events: the August 15 meeting between the U.S. and Russian presidents, upcoming speeches from Federal Reserve officials and the release of the U.S. CPI data.
In China, data from the National Bureau of Statistics (NBS) on Saturday showed producer prices dropped more than expected in July, while consumer prices were unchanged. The figures underscore how weak domestic demand and persistent trade uncertainty are dampening both consumer and business confidence.
