Oil prices edged up in Thursday’s Asian trading session as investors focused on the potential effects of a high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin on global supply.
Crude has been struggling for the past two weeks amid persistent concerns over declining demand, and prices fell sharply on Wednesday after data revealed an unexpected rise in U.S. crude inventories.
By 21:58 ET (01:58 GMT), October Brent futures were up 0.4% at $65.88 per barrel, while WTI futures gained 0.3% to $62.13 per barrel.
Trump and Putin to Meet on Ukraine
The leaders are scheduled to meet in Alaska on Friday to discuss a possible ceasefire in Ukraine. On Wednesday, Trump warned of “severe consequences” if Putin refuses to agree to peace. He had also previously threatened steep tariffs on major Russian oil buyers, including India and China.
If these measures are enforced or if further restrictions target Russia’s energy sector, global oil supplies could tighten, giving crude prices some support. However, reports indicate that Trump does not anticipate an immediate resolution to the Ukraine conflict and may offer Russia concessions to de-escalate tensions around Kyiv. Any reduction in sanctions could weigh on prices, as concerns over oversupply have been a persistent drag this year.
Supply Surplus and U.S. Inventories Keep Pressure on Crude
Oil markets have been weighed down by bearish supply outlooks from both the U.S. government and the International Energy Agency (IEA). The IEA highlighted that global oil supplies appear “bloated,” in part due to OPEC+ steadily increasing output this year.
The agency also projected that a supply surplus could persist in 2025 and 2026, while demand is expected to ease in the coming months. The IEA anticipates a daily oil surplus of around 3 million barrels by 2026.
Adding to the bearish sentiment, U.S. inventories rose by 3 million barrels last week, far exceeding expectations for a 0.9 million barrel drawdown. The data underscores the approaching end of the busy summer driving season in the U.S., with fuel demand typically tapering off as the country moves into autumn and winter.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.