Crude oil prices edged lower on Monday as investors awaited a scheduled meeting between U.S. President Donald Trump and Russian President Vladimir Putin later this week, with traders closely watching for any developments that could affect global energy markets.
Market sentiment turned bearish after Trump allowed the deadline for a Russia-Ukraine peace deal to pass without imposing additional sanctions on Moscow. The absence of tighter restrictions, coupled with weaker-than-expected economic data from both the United States and China, fueled concerns about slowing demand from the world’s two largest oil consumers.
As of early trading, international benchmark Brent crude slipped 1.02% to $74.03 per barrel, down from Friday’s settlement of $74.79. The U.S. benchmark West Texas Intermediate (WTI) also fell 1.01%, trading at $69.46 per barrel compared to $70.17 in the previous session.
Warren Patterson and Ewa Manthey, commodities strategists at ING, noted that Brent has now retreated to its lowest level since early June. They said the lack of sanction escalation may be contributing to the downturn, and markets are now awaiting the outcome of Friday’s Trump-Putin meeting.
“The likelihood of a swift resolution remains slim, given Russia’s demand for Ukraine to surrender occupied territories — a condition Kyiv is unlikely to accept,” ING stated. “Any de-escalation would reduce sanction risks and could further pressure oil prices due to bearish fundamentals.”
In the U.S., the economy has shown signs of slowing, with investors awaiting Tuesday’s consumer inflation report and Wednesday’s Federal Reserve interest rate decision.
Meanwhile, data from China’s National Bureau of Statistics showed the producer price index fell 4.6% in April from a year earlier, while the consumer price index rose only 0.2%. The figures point to a slower-than-anticipated post-COVID recovery, raising further concerns about global demand.
Adding to the downward momentum, Iran signaled willingness to reach a nuclear deal with the West, provided its nuclear infrastructure remains intact. Ayatollah Ali Khamenei’s remarks raised speculation that Iranian crude could re-enter global markets if sanctions are lifted, potentially disrupting supply dynamics.
In the U.S., Baker Hughes reported that the oil rig count declined by one to 539 in the week ending August 8, down 49 rigs from the same period last year, reflecting a modest slowdown in short-term production activity.
