Oil prices fell, extending a more than 4% drop last week as investors await the outcome of US-russia talks on the war in Ukraine later this week.
This was reported by Ekonomichna Pravda with reference to Reuters.
The report said that Brent crude futures fell 33 cents, or 0.5%, to USD 66.26 a barrel, while West Texas Intermediate (WTI) crude futures fell 39 cents to USD 63.49.
Expectations grew for a possible end to sanctions that have restricted the supply of russian oil to international markets after US President Donald Trump said on Friday that he would meet with russian leader vladimir putin on August 15 in Alaska for talks on ending the war in Ukraine.
The talks come amid heightened US pressure on russia, raising the prospect of additional sanctions against moscow if a peace deal is not reached.
"If peace talks fail and the conflict drags on, the market could quickly return to bullish sentiment, which could send oil prices soaring," said Sugandha Sachdeva, founder of research firm SS WealthStreet in New Delhi.
Trump set a deadline of last Friday for russia to agree to peace or its oil buyers would face secondary sanctions.
At the same time, Washington is pressuring India to reduce its purchases of russian oil.
Consulting firm Energy Aspects estimates that Indian refiners have already purchased 5 million barrels of WTI for August deliveries, with another 5 million barrels possible depending on the outcome of tenders, as well as 5 million barrels for September deliveries.
WTI arbitrage for Asia remains open, and India is likely to continue buying US oil, Energy Aspects said in a weekly note.
It noted that Trump's tariff hikes on imports from dozens of countries, which took effect on Thursday, are likely to weigh on economic activity, forcing supply chains to shift and contributing to rising inflation.
As the Ukrainian News agency earlier reported, oil prices were little changed on Friday, August 1, as concerns about the impact of tariffs on global fuel demand are balanced by the threat of disruption to oil supplies from russia.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.