Crude Oil Prices Hold Steady as Trump-Putin Meeting Nears

Crude oil prices showed a small rise in Asian trading on Thursday, following a week of sharp losses. This recovery comes as global markets wait for the outcome of a crucial summit between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska on Friday. The focus of the meeting is the ongoing Russia-Ukraine war, but its results could have a major impact on global oil supply and prices.

Geopolitical Risks Keep Crude Oil Prices Volatile

President Trump has said that reaching a ceasefire in Ukraine is his top priority. He has also warned of “severe consequences” if peace is not achieved. This includes stronger tariffs on countries like India that continue to buy Russian oil. If the U.S. decides to tighten sanctions on Russian oil exports, it could reduce global supply and lead to higher oil prices.

However, there is also a chance that Trump may try to ease tensions by offering deals to Putin. If sanctions on Russia’s oil sector are softened, more oil could enter the market, putting even more pressure on prices. The uncertainty around the summit’s outcome is making oil prices volatile.

Oversupply Still a Big Worry

Even with the geopolitical concerns, the bigger issue in the market right now is oversupply. Both the International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) have warned about this. The IEA recently predicted a record oil surplus of nearly 3 million barrels per day by 2026, caused by rising production and slower demand growth.

In the U.S., recent data showed a surprise increase of 3 million barrels in oil inventories. This is a sign that demand may already be falling, especially as the summer driving season comes to an end. More supply and weaker demand usually mean lower prices, which may pressurise crude oil prices in the near future.

Read more: Are Banks and the Stock Market Closed on 15th August 2025 for Independence Day?

Conclusion

Going ahead, crude oil prices could be influenced by short-term political risks and long-term supply issues. The Trump-Putin meeting could shake the market if new sanctions or peace deals are announced. For investors, especially those holding energy stocks, it’s important to be well-informed to make smarter decisions in a complex market.

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