Oil prices fell in early Asian trading on Tuesday as investors weighed developments from U.S.-Ukraine discussions, with attention turning toward a potential meeting between Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin.
At 01:05 ET (05:05 GMT), October Brent crude futures dropped 0.5% to $66.16 per barrel, while West Texas Intermediate (WTI) futures slipped 0.8% to $62.22 per barrel. Both benchmarks had risen nearly 1% on Monday after U.S. Trade Adviser Peter Navarro criticized India’s purchase of discounted Russian crude, renewing concerns over global supply.
Trump-Zelenskiy Summit in the Spotlight
President Donald Trump hosted Zelenskiy at the White House on Monday, alongside top European leaders, in a high-profile summit aimed at exploring ways to end the conflict in Ukraine.
Trump promised that the U.S. would support Ukraine’s security as part of any peace agreement, though he did not outline the specifics of these assurances. Zelenskiy hailed the commitment as “a major step forward.”
“No critical breakthrough occurred. It seems the next stage is a meeting between Zelensky and Putin, possibly within two weeks,” ING analysts noted in a statement.
Potential Zelenskiy-Putin Talks
Trump said he is arranging a meeting between Zelenskiy and Putin and floated the idea of a subsequent three-way discussion, keeping hopes alive for a diplomatic path forward. European leaders in Washington emphasized the need for a ceasefire first, while Trump indicated support for Europe-led security guarantees for Kyiv.
“Betting markets aren’t overly confident that a ceasefire will occur before year-end. Polymarkets shows a 38% chance, well below the 78% peak seen in March,” ING analysts said.
“The modest price movement in the oil market this morning seems consistent with this view.”
Markets Monitor U.S.-India Tariffs
Investors are also eyeing the 25% additional U.S. tariffs on Indian crude imports from Russia, set to take effect on August 27. Navarro warned that India must halt Russian oil purchases or face further consequences. Meanwhile, Indian refiners, including Indian Oil Corp, reaffirmed their intention to continue imports if economically viable.
“To make matters worse, trade talks scheduled for late August have reportedly been postponed,” ING analysts added. Markets are looking for diplomatic signals to gauge whether tensions will ease or escalate further.
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.