Oil prices slip as U.S. pauses fresh action on Russian exports

August 18, 2025 (MLN): Oil prices fell on Monday after the United States held off on imposing additional measures against Russian oil exports, following Friday’s meeting between the two presidents that offered no new pressure on Moscow to end the Ukraine war.

Brent crude futures increased by $0.26, or 0.39%, to $66.11 per barrel. 

West Texas Intermediate (WTI) crude futures rose by $0.36, or 0.57%, to $63.16 per barrel by [11:52 am] PST.

U.S. President Donald Trump met Russian President Vladimir Putin in Alaska on Friday, signaling greater alignment with Moscow on pursuing a peace agreement rather than prioritizing a ceasefire.

Trump is set to meet Ukrainian President Volodymyr Zelenskiy and European leaders on Monday as part of efforts to push for a rapid resolution to what has become Europe’s deadliest conflict in eight decades.

On Friday, Trump said he did not see an immediate need to impose retaliatory tariffs on countries such as China for purchasing Russian oil, though he left open the possibility of doing so “in two or three weeks.” His remarks eased market concerns about disruptions to Russian crude supply.

China, the world’s top oil importer, remains the largest buyer of Russian oil, followed by India.

RBC Capital analyst Helima Croft noted that the key issue under consideration was secondary tariffs targeting major importers of Russian energy. She said Trump’s decision to pause further action, particularly toward China, keeps the current situation largely unchanged.

“The status quo remains intact for now,” Croft added, pointing out that Moscow continues to hold firm on its territorial demands, while Ukraine and several European leaders resist any land-for-peace arrangement.

Meanwhile, investors are also closely tracking Federal Reserve Chairman Jerome Powell’s upcoming remarks at the Jackson Hole symposium, looking for signals on the outlook for interest rate cuts that could propel U.S. equities to fresh record highs.

“It’s likely Powell will stay cautious and emphasize a data-driven approach, especially with one more jobs report and CPI release due before the September 17 FOMC meeting,” IG market analyst Tony Sycamore wrote in a note.

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