Oil Prices Drop as Kremlin Confirms Upcoming Putin-Trump Summit

Oil prices slipped at the close of trading on Thursday after earlier gains were erased following a Kremlin announcement confirming an imminent meeting between Russian President Vladimir Putin and U.S. President Donald Trump, fueling speculation that a diplomatic breakthrough in the Ukraine war may be on the horizon.

The news sent markets into a recalibration, with traders anticipating the possibility of de-escalation in geopolitical tensions, potentially easing concerns over supply disruption.

Brent crude futures fell by 46 cents or 0.69%, settling at $66.43 per barrel, while West Texas Intermediate (WTI) dropped 47 cents or 0.73% to $63.88 per barrel, both benchmarks extending losses from Wednesday, when they each fell about 1% to eight-week lows.

Latest Oil Prices:

WTI Crude $63.79 -0.09 -0.14%

Brent Crude $66.38 -0.05 -0.08%

Murban Crude $69.25 +0.04 +0.06%

Louisiana Light $69.31 -3.30 -4.54%

Bonny Light $78.62 -2.30 -2.84%

Opec Basket $70.59 -0.14 -0.20%

Mars US $71.56 -1.02 -1.41%

Gasoline $2.072 -0.005 -0.24%

Natural Gas $3.080 +0.013 +0.42%

"If this summit results in a pathway to peace, the geopolitical risk premium built into energy prices could quickly deflate," noted one London-based analyst.

Kremlin aide Yuri Ushakov confirmed Thursday that the two leaders will meet "in the coming days," marking the first official summit between the U.S. and Russian presidents since 2021. A U.S. official had hinted earlier in the week that a meeting could take place as soon as next week.

While the meeting could potentially signal progress in ending the Ukraine conflict, the U.S. continues to increase pressure on Moscow through economic means.

On Wednesday, the Biden administration imposed 25% tariffs on imports from India, citing New Delhi’s continued imports of Russian oil, a move widely interpreted as a signal to energy buyers that closer ties with Russia may carry financial consequences.

President Trump also threatened to levy additional tariffs on China, which has surpassed India as the largest buyer of Russian crude.

Despite these measures, the prospect of a Putin-Trump summit appears to have outweighed fears of near-term sanctions, dragging down oil prices further.