Oil market reacts carefully after the peace talks held between US President Donald Trump and Russian President Vladamir Putin in Alaska. Global oil prices show stability on Monday, expecting a ceasefire between Russian and Ukraine.
The Brent crude benchmark edged down by 6 cents, or 0.09%, to $65.79 per barrel, while US West Texas Intermediate (WTI) crude ticked up slightly by 2 cents to $62.82 per barrel as of 0342 GMT.
However, markets were projecting a possible interruption in Russian oil exports if the US imposed new sanctions. But the decision taken by Donald Trump, not to escalate actions against Russian energy shipments, mainly to key importers like China and India, reduced supply concerns.
The US president signalled he would wait and watch for about three weeks before considering retaliatory tariffs again on countries which are importing oil from Russian.
Geopolitical Signals from Alaska Summit
At the Trump-Putin summit in Alaska, both the leaders expressed a common interest in exchanging a peace agreement to end the current war in Ukraine. Trump is going to meet with Ukrainian President Volodymyr Zelensky and European leaders to follow a settlement that could bring an end to Europe’s deadliest conflict in eight decades.
Analysts recommend that the current deviations in oil price is a reflection of “wait-and-watch” approach. More Russian barrels could enter the global crude supply if this war aggressions eases.
Focus Shifts to China, India, and Global Demand
China and India continue to buy Russian oil. Additionally, traders are also monitoring the comments of Federal Reserve Chair Jerome Powell’s at the Jackson Hole symposium for insights on interest rate policy. This could affect energy demand and market sentiments, therefore.
Also Read: Why Global Oil Markets Just Shuddered: OPEC+ To Raise Output In September Amid Geopolitical Tensions
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
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