Oil Prices Slide as Peace Talks Ease Global Tensions
LONDON, Aug 19 — Oil prices retreated on Tuesday after gaining 1% in the previous session, as traders weighed the possibility of progress in talks between Russia, Ukraine, and the United States. Analysts believe that potential peace negotiations could pave the way for easing sanctions on Russian crude, boosting global supply and pressuring prices lower.
Brent crude futures dropped 85 cents, or 1.3%, to $65.75 per barrel by 1315 GMT. Meanwhile, U.S. West Texas Intermediate (WTI) crude for September delivery, set to expire on Wednesday, slipped 95 cents, or 1.5%, to $62.47. The more active October WTI contract also dipped 63 cents, or 1%, trading at $62.07.
The decline follows Monday’s White House meeting between President Donald Trump, Ukrainian President Volodymyr Zelenskiy, and European leaders. Trump revealed on social media that he had also spoken with Russian President Vladimir Putin and that plans were underway for a direct meeting between Putin and Zelenskiy. Such talks could potentially expand into a trilateral summit aimed at ending the conflict.
Commerzbank analysts noted that optimism around negotiations is fueling hopes for de-escalation, directly impacting oil markets. Suvro Sarkar, lead energy analyst at DBS Bank, added that Trump’s softer approach on secondary sanctions against Russian oil importers eased concerns over supply disruptions, calming geopolitical risks.
On the supply side, Chinese refiners have already purchased 15 shipments of Russian oil for October and November, as India’s appetite for Moscow’s exports continues to shrink. Zelenskiy described his discussions with Trump as “very good,” highlighting talks about possible U.S. security guarantees for Ukraine. While Trump confirmed U.S. support, the full scope of assistance remains uncertain.
Despite Trump’s push for a swift resolution to Europe’s deadliest conflict in decades, Kyiv and its allies remain cautious, fearing a settlement that may lean in Moscow’s favor. Bart Melek, head of commodity strategy at TD Securities, suggested that if tensions ease further, oil prices could gradually decline toward $58 per barrel by late 2025 to early 2026.
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