Oil Prices Decline Ahead of U.S-Russia Peace Talks
Crude oil prices declined in the global commodities market on Friday, reflecting sustained geopolitical uncertainties as markets focused on today’s meeting in Alaska between US President Donald Trump and Russian President Vladimir Putin.
Brent crude fell 0.57% to $66.08 a barrel, down from $66.46 at Thursday’s close. The US benchmark West Texas Intermediate (WTI) decreased 0.61% to $62.72 per barrel, compared to $63.11 in the previous session.
Markets were grappling with uncertainty ahead of the summit, scheduled for Aug. 15 at Joint Base Elmendorf Richardson in Anchorage.
The US President said on Thursday that European leaders may be invited to a potential follow-on multilateral meeting after he sits down with Russian President Putin later this week. Trump said he thinks the sit-down will be a “good meeting,” but emphasized that the “more important meeting will be the second meeting that we’re having.”
“We’re going to have a meeting with President Putin, President Zelenskyy, myself, and maybe we’ll bring some of the European leaders along. Maybe not,” Trump told reporters in the Oval Office.
“We’re going to see what happens. And I think President Putin will make peace. I think President Zelenskyy will make peace. We’ll see if they can get along. And if they can, it will be great,” he added.
It remains unclear if the second meeting will materialize after Trump and Putin hold their sit-down. Experts say progress toward a ceasefire could ease supply concerns and put downward pressure on oil prices, but prices could remain supported if the talks end without agreement.
Meanwhile, a higher-than-expected rise in the US Producer Price Index (PPI) fueled concerns about the inflationary impact of tariffs, adding downward pressure on oil prices.
The PPI rose 0.9% in July from the prior month and 3.3% from a year earlier, surpassing expectations. It marked the largest monthly increase since June 2022 and the biggest annual gain since February.
Expectations for interest rate cuts by the US Federal Reserve (Fed) strengthened after Tuesday’s Consumer Price Index data showed moderate results, but eased following Wednesday’s higher PPI reading.
Money market pricing shows a 94% chance the Fed will cut interest rates at its September meeting, with a quarter-point move still widely expected and the odds of a half-point cut remaining low. Lower policy rates are expected to boost US economic activity, supporting higher oil demand. #Oil Prices Decline Ahead of U.S-Russia Peace Talks Zenith Bank Target Price Sets at N107.50, 44% Upside
