Crude oil prices have fallen following the meeting between Trump and Putin. Brent crude fell by 0.39% to $65.59 per barrel, and WTI crude decreased by 0.29% to $62.62. The US signaled it would not take immediate strict action against Russia regarding oil exports, reducing fears of supply disruption.
Crude oil prices: The impact of the meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska on Friday was clearly visible on the oil market on Monday. At the meeting, the US postponed strict measures regarding Russia's oil exports, which reduced the fear of supply disruption and led to a fall in prices. Brent crude fell to $65.59 per barrel and WTI to $62.62 per barrel. Investors are now eyeing Trump's upcoming meetings with European leaders and the Jackson Hole meeting, where Fed Chairman Powell may signal about interest rates.
How much did crude oil prices fall?
On Monday morning, Brent crude futures fell by 26 cents, or 0.39 percent, to $65.59 per barrel. Meanwhile, the price of US WTI crude decreased by 18 cents, or 0.29 percent, to $62.62 per barrel. This decline is significant because there had been concerns in the market for the past few days that supply could be disrupted due to the Russia-Ukraine war and pressure from Western countries.
What was discussed in the meeting?
Trump and Putin met face-to-face in Alaska on Friday. The Ukraine war was discussed in this meeting, but no direct agreement was reached. Nevertheless, both leaders emphasized reducing tensions. Trump clarified that the US would not take any strict action on Russia's oil exports for now. He said that it is more important to move towards a peace agreement than a ceasefire. This statement reassured the market that oil supplies would not be immediately affected.
China is the world's largest oil buyer, and most of the oil from Russia also goes there. India also buys oil from Russia on a large scale. That is why when the US signaled that it was not immediately considering imposing additional taxes on countries like China, it further reduced market pressure. Trump said that this issue could be considered in 2 to 3 weeks.
Further meetings with Europe and Ukraine
Trump also said that he will meet with Ukrainian President Zelensky and European leaders on Monday. His aim is to find a way to reach a peace agreement as soon as possible. If progress is made in this direction, the oil market may get further relief.
Investors eye Jackson Hole Meeting
Investors are also watching the US Jackson Hole meeting this week. Here, US Federal Reserve Chairman Colin Powell will signal about interest rates. If there is a hint of a rate cut, global stock markets may see a rise. However, uncertainty still surrounds Powell's statement. Market expert Tony Sycamore says that Powell may avoid giving clear signals and will decide only on the next economic report. Especially before the Federal Open Market Committee meeting on September 17, when new payroll and consumer inflation reports will come out.
Threat of strict sanctions on Russia averted
There had been a fear in the oil market for some time that stricter sanctions could be imposed on Russia. This would disrupt its supply and prices would rise suddenly. But after the meeting between Trump and Putin, this apprehension has been averted for now. Investors are confident that there will be no major crisis in oil supply in the near future. That is why prices have fallen.
