FX.co ★ Oil Steadies Ahead Trump-Putin Meeting

WTI crude oil futures remained steady at approximately $64 per barrel on Monday, following a 5.1% decline last week—the most significant since late June—as President Trump's initiatives to conclude the Ukraine conflict reduced concerns about potential disruptions in Russian oil supply. Last Friday, Trump revealed plans for a summit with Russian President Putin in Alaska and indicated that no new sanctions on Russian crude oil would be introduced while negotiations are ongoing. Sources suggest that discussions might solidify Moscow's territorial advancements, although any agreement is speculative and would require the consent of Ukraine and European nations. Should a peace agreement be reached, it could lead to the removal of sanctions on Russian oil, thereby alleviating supply disruption risks. Currently, markets are keenly anticipating OPEC's monthly report and forecasts from the US Energy Information Administration (EIA) and the International Energy Agency (IEA) for updated supply-demand metrics. So far in 2023, oil prices have decreased by over 10%, as OPEC+ has been reinstating production more rapidly than planned, reversing the cuts made in 2023, amidst concerns of slowed economic growth affecting demand.