Oil slips as Trump-Putin meeting cools fears of Russian supply disruption

Oil prices edged lower on Monday after the much-anticipated meeting between US President Donald Trump and Russian President Vladimir Putin signalled no immediate escalation in measures against Moscow’s energy exports. As per Reuters, Brent crude futures slipped 26 cents, or 0.39 per cent, to $65.59 a barrel by 0028 GMT, while US West Texas Intermediate (WTI) crude was down 18 cents, or 0.29 per cent, at $62.62.

Trump-Putin talks shift focus from sanctions to peace deal

The two leaders met in Alaska on Friday and emerged more aligned on pursuing a peace deal rather than prioritising a ceasefire in Ukraine, according to Reuters. The US president’s stance eased investor concerns about the possibility of new sanctions or secondary tariffs that could have further curbed Russian crude flows.

Trump is scheduled to meet Ukrainian President Volodymyr Zelenskiy and European leaders on Monday in a fresh bid to accelerate talks towards ending what has become Europe’s deadliest conflict in 80 years.

On Friday, Trump signalled that retaliatory tariffs on countries such as China for continuing purchases of Russian oil were not on the immediate agenda, though he left the door open to such measures “in two or three weeks”. That pause helped calm fears of a near-term disruption in Russian supply.

China and India remain key buyers

China, the world’s biggest crude importer, remains the largest buyer of Russian oil, followed closely by India. According to Reuters, analysts noted that secondary sanctions aimed at Beijing or New Delhi had been the major risk factor for markets in recent weeks.

Helima Croft, an analyst at RBC Capital, was quoted by Reuters as saying: “What was primarily in play were the secondary tariffs targeting the key importers of Russian energy, and President Trump has indeed indicated that he will pause pursuing incremental action on this front, at least for China. The status quo remains largely intact for now.”

However, Croft cautioned that Moscow is unlikely to retreat from its territorial demands, while Ukraine and some European leaders are expected to resist any land-for-peace agreement.

Markets eye Fed outlook

Beyond geopolitics, investors are also turning their attention to US monetary policy. Federal Reserve Chair Jerome Powell is set to speak at the Jackson Hole economic symposium later this week, a closely watched event for signals on the timing of rate cuts.

“It’s likely he will remain non-committal and data-dependent, especially with one more payroll and CPI report before the September 17 FOMC meeting,” IG market analyst Tony Sycamore said in a note, as per Reuters.

The combination of steady Russian flows and uncertainty over US monetary policy kept oil markets cautious at the start of the week.

(With inputs from the agencies)