Oil Weakens Amid Trump's Diplomatic Push for Ukraine
Oil prices slipped on Tuesday after US President Donald Trump stepped up diplomatic efforts to push for a ceasefire in Ukraine. Trump pushed for a direct meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy after a series of high-level meetings at the White House. WTI fell about 1% to below $63 per barrel, while Brent weakened to around $66 per barrel.
The market believes that a peace deal could ease restrictions on Russian oil exports, although Russian oil flows have remained relatively stable since the war began. Trump emphasized that both Russia and Ukraine need to show flexibility in the talks. However, uncertainty remains high as fighting continues. Ukraine claims to have attacked Russia's Druzhba oil pipeline system, while Moscow is said to have retaliated by hitting oil refineries in Ukraine.
Meanwhile, global oil prices remain pressured by concerns about oversupply as OPEC+ continues to increase supply. So far this year, oil has fallen more than 10%, exacerbated by uncertainty over US trade policy. US Treasury Secretary Scott Bessent even reiterated the potential for tariff increases on India due to its purchases of Russian oil, adding to market risk factors.
Although volatility was relatively limited during the summer, several indicators point to a potential shift in oil trade flows. On the US Gulf Coast, barrel oil prices reached their highest premium in months, suggesting more exports in the near future. Meanwhile, WTI was trading at its largest discount to Brent since April, another factor that could encourage overseas shipments. At the time of writing, WTI September was down 1.1% at $62.70, the more active October contract was down 1% at $62.05, and Brent October was down 0.9% at $66.02 per barrel. (ayu)
Source: Newsmaker.id
