Oil prices fell on August 19 as market participants weighed the prospects for trilateral talks between Moscow, Kyiv and Washington aimed at ending the war in Ukraine and potentially leading to the lifting of sanctions on Russian oil. About this informsReuters agency.
Brent futures were down 53 cents, or 0.8%, at $66.07 a barrel. West Texas Intermediate (WTI) crude for September delivery, which expires on Wednesday, was down 44 cents, or 0.7%, at $62.98 a barrel. The more active October WTI contract was down 55 cents, or 0.9%, at $62.15 a barrel. In the previous session, quotes closed 1% higher.
After a meeting with the President of Ukraine Volodymyr Zelenskyi and a group of European allies at the White House, US President Donald Trump announced that he contacted Vladimir Putin and began organizing a meeting between him and Zelenskyi, and after that he plans a tripartite summit with the participation of the three presidents.
“Oil prices are largely reacting to the results of recent meetings between Trump and Putin and Trump and Zelenskyi. While no peace deal or ceasefire appears imminent, some progress has been made and the possibility of further escalation or increased sanctions against Russia by the US or Europe is likely off the agenda for now.” explained Sugro Sarkar, chief energy analyst at DBS Bank.
Trump’s rhetoric about secondary sanctions against Russian oil importers has also eased, he said, which could otherwise disrupt global oil supplies. Thus, the geopolitical risks for the oil market decreased a little this week.
