Oil prices slide as Trump, Putin plan fresh Ukraine talks

October 17, 2025 (MLN): Oil prices slipped on Friday, set to record a weekly decline of nearly 3%, as the International Energy Agency (IEA) projected a widening supply glut and U.S. President Donald Trump and Russian President Vladimir Putin agreed to hold another meeting on the Ukraine conflict.

Brent crude futures went up by $0.74, or 1.21%, to $60.32 per barrel.

West Texas Intermediate (WTI) crude futures decreased by $0.64, or 1.11%, to $56.82 per barrel by [3:30 pm] PST.

The two leaders agreed on Thursday to hold another meeting within the next two weeks in Budapest to discuss the ongoing war in Ukraine a development that raised speculation about a potential softening of Washington’s stance on Moscow. Analysts said such a move could weigh further on crude prices.

“Now that the two leaders are expected to meet, it could be a sign that the U.S.’s stance on Russia may ease. If so, that should push prices lower,” said Tamas Varga, analyst at PVM.

Meanwhile, Ukrainian President Volodymyr Zelenskiy was en route to Washington on Friday to seek additional military support, including U.S.-made long-range Tomahawk missiles. The visit comes as the U.S. urges India and China to reduce purchases of Russian oil.

According to Varga, Ukrainian drone strikes on Russian refineries and the threat of secondary sanctions on Russian oil buyers such as India and China had previously supported the market, but this could shift if diplomatic momentum builds.

Adding to bearish sentiment, escalating trade tensions between the U.S. and China have fueled concerns over a potential economic slowdown and reduced energy demand. “It just demolishes confidence,” said Jorge Montepeque, managing director at Onyx Capital Group, who warned that the U.S. economy could soon feel the effects.

The IEA’s latest report projecting an oversupply by 2026 further pressured prices. Supporting this view, the U.S. Energy Information Administration (EIA) reported on Thursday that crude inventories rose by 3.5m barrels to 423.8 million barrels last week, far exceeding analysts’ expectations for a modest 288,000-barrel increase.

The larger-than-expected build was attributed to lower refining activity as plants entered seasonal maintenance turnarounds. The data also showed U.S. crude production climbing to a record 13.636m barrels per day.

On Thursday, Brent crude settled 1.37% lower, while U.S. West Texas Intermediate (WTI) dropped 1.39%, marking their lowest close since May 5.

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