Oil Prices Decline Ahead Of Putin-Trump Meet In Alaska- Ukraine, Tariffs On Agenda

Ahead of the highly anticipated meeting between Russian President Vladimir Putin and US President Donald Trump, the global oil prices declined by 4 per cent in a week, signalling a two-month low.

Meanwhile, brent crude oil prices were up by 5 cents to USD 66.64 per barrel, and crude futures declined by 1 cents to USD 63.87.

Trump is slated to meet with his Russian counterpart on Friday with the war in Ukraine as top item on his agenda list, which reportedly is likely to involve handing over eastern Ukraine to Russia.

In a formal note, Trump has mentioned the land-swap to part of the pact that could usher peace in Ukraine.

The brent crude oil traded near USD 66 a barrel after declining 4.4 per cent last week and West Texas Intermediate was above $63, as per a Bloomberg report.

Robert Rennie, Head of Commodity & Carbon Research, Westpac Banking Corp, said curating a deal is an extremely arduous task, assuming a dela is struck brent would be below USD 65 with risks, citing a Bloomberg report.

Further, he said that prices might drop below $60 late in the fourth quarter of the year.

Also Read: India Braces For Trump Tariff Impact: 55% of Exports To US At Risk

Meanwhile, the present scenario has already placed additional pressure on Trump-Putin talks given the US President's imposition of additional tariffs on India for buying Russian oil.

Prices fell in recent days as market participants reduced supply disruption estimates, likely because the U.S. only imposed an extra tariff on India rather than all buyers of Russian oil, said UBS analyst Giovanni Staunovo, citing a Reuters report.

Financial services major UBS has reduced it year-end Brent crude forecast to USD 62 a barrel instead of USD 68, as a result of increased supply from South America, and resilient output from sanctioned countries.

The demand from India had fallen short of its expectations of late, and that it expected OPEC+ to pause its production hikes unless larger unexpected supply disruptions emerge, it said.

An Exxon Mobil-led consortium began crude production four months earlier than expected at a fourth floating production, storage and offloading vessel in Guyana, Exxon said on Friday.

Consultancy Energy Aspects estimated Indian refiners have already purchased WTI totalling 5 million barrels for August loadings.