Oil prices fall further ahead of U.S. Russia peace talks

August 11, 2025 (MLN): Oil prices dropped in Asian trading on Monday, building on last week’s slide of over 4%, as markets awaited the results of upcoming U.S.–Russia discussions on the Ukraine conflict.

Brent crude futures decreased by $0.29 or 0.44%, to $66.30 per barrel.

West Texas Intermediate (WTI) crude futures fall by $0.36, or 0.56%, to $63.52 per barrel by [1:44 pm] PST

Hopes for a possible lifting of sanctions restricting Russian oil exports have grown after U.S. President Donald Trump informed on Friday that he will meet Russian President Vladimir Putin in Alaska on August 15 to negotiate an end to the war in Ukraine.

The planned talks come amid heightened U.S. pressure on Moscow with the possibility that sanctions could be tightened if no peace agreement is reached.

“If negotiations collapse and the conflict continues market sentiment could quickly turn bullish, potentially sparking a sharp surge in oil prices,” said Sugandha Sachdeva, founder of New Delhi-based SS WealthStreet.

Trump had given Russia until last Friday to agree to peace or risk having its oil buyers face secondary sanctions.

At the same time, Washington is urging India to scale back its purchases of Russian crude.

According to consultancy Energy Aspects Indian refiners have already booked 5 million barrels of WTI for August loadings with another 5m barrels possible depending on tender results, and an additional 5m barrels for September loadings.

The firm noted that the WTI arbitrage to Asia remains favorable, allowing India to continue absorbing U.S. crude for the time being.

Meanwhile, Trump’s newly imposed higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to slow economic activity by disrupting supply chains and adding to inflationary pressures.

Weighed down by these economic concerns, Brent crude fell 4.4% last week, while WTI dropped 5.1%.

“The short-term market direction will depend on several key developments, including the August 15 meeting between the U.S. and Russian leaders, upcoming remarks from Federal Reserve officials, and the release of U.S. CPI data,” Sachdeva added.

In a separate development, China’s National Bureau of Statistics reported on Saturday that producer prices declined more than anticipated in July while consumer prices were unchanged.

The data stressed how sluggish domestic demand and persistent trade uncertainty are dampening both consumer and business confidence.

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