Written by The Banking Post
Oil prices fell on Tuesday as investors weighed the possibility that renewed talks between Washington, Moscow and Kyiv could pave the way for easing sanctions on Russian crude, potentially boosting global supply.
Brent crude slipped 48 cents, or 0.72%, to $66.12 a barrel by 0820 GMT, while US West Texas Intermediate (WTI) September futures dropped 40 cents, or 0.63%, to $63.02 ahead of expiry. The more active October WTI contract fell 46 cents, or 0.73%, to $62.24. The declines came after both benchmarks gained about 1% in the previous session.
The market is responding to signals from recent high-level talks. Following meetings with Ukrainian President Volodymyr Zelenskiy and European allies, US President Donald Trump said he had spoken with Russian President Vladimir Putin and was working toward a potential summit with Zelenskiy.
“Oil prices are largely responding to the outcomes of these meetings. While no outright peace deal or ceasefire is imminent, progress has been made,” said Suvro Sarkar, lead energy analyst at DBS Bank. He added that Trump’s softened stance on sanctions targeting Russian oil buyers has reduced fears of supply shocks.
Zelenskiy described his talks with Trump as “very good,” noting discussions on US security guarantees for Ukraine. But Kyiv and its allies remain cautious that Washington could push for a deal more favorable to Moscow.
Analysts expect oil to remain under pressure if sanctions risk continues to ease. “An outcome that reduces the threat of secondary tariffs or sanctions could see prices drift lower toward our $58 per barrel Q4-25/Q1-26 target,” Bart Melek of TD Securities said in a note.
