Oil Steady, Market Cautious Ahead of Trump-Putin Meeting & OPEC Data
Oil prices were stable on Tuesday (August 12th) as the market weighed the impact of President Donald Trump's delay in imposing high US tariffs on China and anticipated the outcome of his meeting later this week with Russian President Vladimir Putin.
Brent crude traded near $67 per barrel, while West Texas Intermediate (WTI) hovered around $64 per barrel, still near a two-month low after a sluggish trading session on Monday and low volumes early in the Asian session. Trump signed an executive order extending the trade truce with China until November 10th, postponing the tariff increase originally scheduled for Tuesday.
Market participants are now focusing on the meeting between Trump and Putin scheduled for next Friday. This meeting is seen as potentially addressing the easing of sanctions against Russia, one of the world's largest oil producers. However, Trump on Monday dampened expectations of a deal to end the war in Ukraine. This uncertainty is keeping the market cautious, especially as crude oil prices have plummeted more than 10% so far this year.
Price pressure is fueled by concerns about a supply surplus by the end of the year, especially after OPEC+ decided to reverse production cuts implemented in 2023. This decision comes amid signs of slowing global economic growth, which risks depressing energy demand in the coming quarters.
According to Vandana Hari, founder of Vanda Insights, oil prices are likely to remain rangebound until Friday's meeting, but are slightly more vulnerable to downward pressure. Brent's aggregate trading volume on Monday was the lowest since early July and well below the daily average, indicating cautious market participants awaiting certainty about price direction.
The market is also awaiting the monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the US Department of Energy, due to be released this Tuesday. These reports are expected to provide a clearer picture of the supply-demand balance and help market participants determine strategies ahead of a week full of geopolitical events and fundamental energy data. (alg)
Source: Newsmaker.id
