Oil falls on announcement of Trump-Putin meeting
[NEW YORK] Oil prices dropped on Thursday for a sixth consecutive session after the Kremlin said Russian President Vladimir Putin would meet US President Donald Trump in the coming days, raising expectations for a diplomatic end to the war in Ukraine.
Brent crude futures settled down 46 cents, or 0.7 per cent, at US$66.43 a barrel. US West Texas Intermediate crude fell 47 cents, or 0.7 per cent, to US$63.88.
Both benchmarks slid about 1 per cent on Wednesday, touching their lowest in eight weeks, after comments from Trump on progress in talks with Moscow.
Kremlin aide Yuri Ushakov said on Thursday that Trump and Putin would meet in the coming days in what would be the first summit between leaders of the two countries since 2021.
A White House official had previously said that Trump could meet Putin as soon as next week.
The US, however, continued preparations to impose secondary sanctions on major buyers of Russian energy products to try to pressure Moscow to end the war in Ukraine.
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Russia is the world’s second-biggest producer of oil behind the United States.
The US ordered a new set of tariffs on Indian goods. Trump imposed an additional 25 per cent tariff on Indian goods on Wednesday, citing the country’s continued imports of Russian oil. The new import tax will take effect on Aug 28.
India is the second-biggest buyer of Russian oil after China. Trump also said he could announce further tariffs on China.
Oil prices have dropped over 9 per cent over the last week.
“Additional increases in Opec production remain as the overriding negative consideration while continued tariff uncertainties are still providing the main argument favouring lower price levels,” analysts at energy advisory firm Ritterbusch and Associates said in a note.
The Organization of the Petroleum Exporting Countries and its allies including Russia, together known as Opec+, agreed on Sunday to raise oil production by 547,000 barrels per day for September.
Thursday’s selling was limited by a crude stockpile drawdown in the US, higher Saudi prices for Asia and solid Chinese crude imports in July, said UBS analyst Giovanni Staunovo.
The Energy Information Administration said on Wednesday that US crude oil stockpiles fell by 3 million barrels to 423.7 million barrels in the week ended Aug 1, exceeding an expected decline of 591,000 barrels in a Reuters poll of analysts.
In China, crude oil imports in July fell by 5.4 per cent from June but were still up 11.5 per cent year-on-year, with analysts expecting refining activity to remain firm in the near term.
Saudi Arabia, the world’s biggest oil exporter, on Wednesday raised its September crude oil prices for Asian buyers, the second monthly rise in a row, on tight supply and robust demand. REUTERS
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