FX.co ★ Oil Prices Fall Ahead of Trump-Putin Talks

WTI crude oil futures fell by 1.8%, closing at $62.8 per barrel on Friday, reflecting an approximate 1% decrease over the week. This decline came as market participants awaited the results from discussions between US President Donald Trump and Russian President Vladimir Putin. The anticipation of a potential ceasefire in Ukraine influenced market dynamics, as such a development could lead to an increase in Russian oil production. However, any easing of sanctions would necessitate Congressional approval, making a swift resolution improbable. Adding to the pressure was weaker economic data from China, where factory output growth reached an eight-month low and retail sales experienced their slowest growth since December, despite an increase in refinery throughput. Additionally, a rise in Chinese oil product exports pointed to reduced domestic fuel demand. The bearish sentiment was further compounded by rising oil supplies from OPEC+ and the potential for increased US interest rates. Overall, projections indicate a market surplus persisting through mid-2026, which is likely to continue exerting downward pressure on oil prices.