Oil Weakens Ahead of Trump-Putin Summit
Oil prices weakened, hovering near $66/barrel, as the market awaited the in-person meeting between Donald Trump and Vladimir Putin on Friday at 9:30 p.m. Western Indonesian Time (WIB). This meeting has the potential to alter the flow of oil exports from one of the world's largest producers.
Putin praised Trump's efforts to end the war in Ukraine, but Trump assessed there was a 25% chance of the meeting failing. If there is peaceful progress, the geopolitical risk premium could fall, pressuring prices. Before the summit, Trump threatened secondary tariffs on major buyers of Russian oil. Russia is the second-largest oil exporter after Saudi Arabia, with China and India being the main discount buyers.
Year-to-date, oil prices are down about 10% due to concerns about Trump's trade policies and the return of OPEC+ supply. Expectations of a record surplus in 2026 are weighing on the market and potentially giving Trump room to pressure Putin.
No official announcement is expected before Friday's trading close; talks begin at 3 p.m. New York time, so a price reaction will likely not be seen until Monday morning in Asia. Last week, Trump doubled tariffs on Indian goods to 50% due to Russian oil purchases and is considering tightening tariffs on the "shadow fleet"—but has not yet targeted China to prevent price spikes. Trump also threatened "very severe consequences" if Putin doesn't agree to a ceasefire, while pushing for a quick second meeting with Zelenskiy. (ayu)
Source: Newsmaker.id
