Oil market awaits Trump’s meeting with Putin
13 August 09:25
On Wednesday, oil prices remained unchanged as investors await clearer figures for US oil inventories and also monitor the upcoming meeting between US President Donald Trump and Russian leader Vladimir Putin. This was reported by "Komersant Ukrainian" reports with reference to Reuters.
According to OilPrice.com, Brent crude oil futures were trading at $66.08 per barrel as of 09:15 Kyiv time, down 4 cents, while futures for US WTI crude oil fell 7 cents to $63.10. On Tuesday, both contracts closed in the red.
Trump’s meeting with Putin
Trump and Putin are scheduled to meet in Alaska on Friday to discuss ending the Russian-Ukrainian war, which has been affecting oil markets since February 2022.
“Oil investors are on hold. The outcome could remove some of the sanctions risks hanging over the market,”
– iNG commodity strategists said.
The White House on Tuesday cooled expectations for a quick ceasefire agreement between Russia and Ukraine, which may prompt investors to reconsider the prospects for a quick end to the war and any easing of sanctions on Russian supplies that have been supporting prices.
“Trump downplayed expectations from his meeting with President Putin… However, expectations of additional sanctions against Russian oil continue to decline,”
– daniel Hines, senior commodity strategist at ANZ, wrote in a commentary.
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Stocks in the United States
Investors are also waiting for additional signals after an industry report showed an increase in US crude oil inventories last week.
According to market sources citing figures from the American Petroleum Institute, crude oil inventories in the United States, the world’s largest oil consumer, rose by 1.52 million barrels last week. Gasoline stocks declined, while distillate stocks increased slightly.
If data from the U.S. Energy Information Administration (EIA), due later on Wednesday, also shows a decline, it could indicate that consumption during the summer travel season has peaked and refineries are cutting back on processing. The demand season usually lasts from late May to early September.
Analysts polled by Reuters expect the EIA report to show a decline in crude oil inventories by about 300 thousand barrels last week.
Forecasts for the future
The forecasts released on Tuesday by OPEC and the EIA point to an increase in production this year, which also put pressure on prices. However, both organizations expect U.S. production to decline in 2026, while other regions will increase oil and natural gas production.
U.S. crude oil production will reach a record 13.41 million barrels per day in 2025 due to increased well productivity, although lower oil prices will push production down in 2026, the AEO predicts in its monthly report.
The monthly report of the Organization of the Petroleum Exporting Countries (OPEC) states that global oil demand will grow by 1.38 million barrels per day in 2026, which is 100 thousand barrels per day more than the previous forecast. The forecast for 2025 remained unchanged.
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