Reuters
[Source: Reuters]
Oil markets are set for a muted price reaction when they open on Sunday after U.S. President Donald Trump’s and Russian leader Vladimir Putin’s meeting in Alaska, at which Trump said a fully-fledged peace deal was the aim for Ukraine rather than a ceasefire.
Trump said he had agreed with Putin that negotiators should go straight to a peace settlement – not via a ceasefire, as Ukraine and European allies, until now with U.S. support, have been demanding.
Trump said he would hold off imposing tariffs on countries such as China for buying Russian oil following his talks with Putin. He has previously threatened sanctions on Moscow and secondary sanctions on countries such as China and India that buy Russian oil if no moves are made to end the Ukraine war.
The oil market will wait for developments from a meeting in Washington on Monday between Trump and Ukrainian President Volodymyr Zelenskiy. European leaders have also been invited to the meeting, a source familiar with the matter told Reuters.
Brent settled at $65.85 a barrel on Friday, and U.S. West Texas Intermediate at $62.80 – both down nearly $1 before the talks in Alaska.
Traders are waiting for a deal, so until that emerges, crude prices are likely to be stuck in a narrow range, said Phil Flynn, a senior analyst with Price Futures Group.
After the imposition of Western sanctions, including a seaborne oil embargo and price caps on Russian oil, Russia has redirected flows to China and India.
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