Oil Prices Fall Amid Expectations of a Breakthrough in US-Russia Negotiations on Ukraine

SadaNews - Oil prices fell in early Asian trading on Monday, continuing their losses of over 4% last week due to the increase in US tariffs on its trading partners, OPEC's rising production, and expectations that the US and Russia are close to an agreement to cease fire in Ukraine.

Brent crude futures dropped by 52 cents, or 0.78%, to $66.07 per barrel by 00:41 GMT, while US West Texas Intermediate crude futures fell by 58 cents to $63.30.

Expectations have risen for the potential end of sanctions that have limited Russian oil supplies to global markets after US President Donald Trump said on Friday that he would meet with Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.

This comes as the US intensifies its pressure on Russia, increasing the likelihood of tightening sanctions on Moscow as well if a peace agreement is not reached.

On Friday, Trump set a deadline for Russia to agree to peace in Ukraine or face secondary sanctions on countries purchasing its oil, while simultaneously pressuring India to reduce its purchases of Russian oil.

Alongside the US-Russian talks, market analyst Tony Sycamore at IG noted in a memo that the US inflation data set to be released on Tuesday will be another major driver of prices this week.

He added, "A decline in the consumer price index is expected to bolster expectations for an early and deep cut in interest rates from the Federal Reserve, which could stimulate economic activity and increase demand for crude. "

He continued, "Conversely, a higher reading is expected to raise concerns about stagflation and undermine rate cut expectations."

Under the impact of bleak economic expectations, Brent fell by 4.4% during the week ending Friday, while West Texas Intermediate crude fell by 5.1%.