Oil Prices Edge Lower as Peace Hopes Grow in Ukraine Conflict
(MENAFN) Oil prices edged lower Tuesday following statements from U.S. and Ukrainian leaders suggesting a potential breakthrough in the Ukraine conflict, raising prospects for eased sanctions on Russian crude and softening geopolitical risk in energy markets.
As of 10:10 a.m. local time (0710 GMT), Brent crude had slipped 0.77% to $65.63 a barrel, down from Monday’s close of $66.14. West Texas Intermediate (WTI) also fell, declining 0.79% to $62.11 per barrel from the previous session's $62.61.
The downturn in prices came after U.S. President Donald Trump confirmed preparations were underway for a three-way summit involving Russian President Vladimir Putin, Ukrainian President Volodymyr Zelenskyy, and himself.
Zelenskyy reaffirmed his willingness to engage in direct negotiations with Putin, signaling openness to bilateral talks before any broader discussions involving U.S. and European leaders.
After high-level talks in Washington, German Chancellor Friedrich Merz indicated that a meeting between Zelenskyy and Putin is expected to take place within two weeks. According to Merz, Zelenskyy and Putin were expected to meet within two weeks.
These diplomatic developments have reassured investors over global oil supply stability, leading to a decline in risk premiums.
Analysts cautioned, however, that a ceasefire or peace deal is not imminent. Still, they noted that renewed momentum in negotiations has tempered immediate geopolitical concerns.
Meanwhile, traders also turned their attention to escalating U.S.-India trade tensions. On August 6, the Trump administration imposed a 25% tariff on Indian goods in response to New Delhi’s continued imports of Russian crude. The tariff, effective August 27, will elevate total duties on many Indian products to as high as 50%, and has effectively stalled ongoing trade discussions between the two countries.
On Monday, Peter Navarro, White House counsellor for trade and manufacturing, condemned India's reliance on Russian oil, labeling it "opportunistic and deeply corrosive of the world's efforts to isolate Putin's war economy."
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