Oil Prices Drop, Market Focuses on US-Russia Meeting on Ukraine
Global crude oil prices weakened again on Monday (August 11), extending the more than 4% decline seen last week. Selling pressure emerged as market participants eyed the meeting between US President Donald Trump and Russian President Vladimir Putin, scheduled for August 15 in Alaska. The meeting aims to negotiate an end to the Ukraine conflict and could have a significant impact on sanctions and oil flows from Russia.
Brent oil fell 0.68% to $66.14 per barrel, while US West Texas Intermediate (WTI) fell 0.77% to $63.39. Analysts predict that if a peace deal fails, sanctions against Russia could be tightened, including potential secondary sanctions on countries buying Russian oil. Meanwhile, UBS cut its year-end Brent price forecast to $62 per barrel from $68 due to rising global supply, including from sanctioned countries.
Additional pressure came from Chinese data showing producer prices (PPI) fell more than expected in July, signaling weakening industrial demand. Meanwhile, ExxonMobil announced the start of oil production at a new facility in Guyana ahead of schedule, adding to supply pressures. Meanwhile, India is expected to purchase up to 15 million barrels of WTI oil for August and September delivery, indicating a shift in global purchasing patterns due to geopolitical tensions and Trump's new tariffs, which are also expected to increase inflation. (ayu)
Source: Newsmaker.id
