Oil Falls as Markets Focus on US-Russia Talks

Summary

Trump and Putin to meet on Friday in Alaska
UBS lowers Brent crude forecast on higher supply
China producer prices fall more than expected in July

LONDON, Aug 11 (Reuters) – Oil prices fell on Monday, extending last week’s more than 4% decline, as investors looked to talks between the U.S. and Russia later this week on the war in Ukraine.

Brent crude futures fell 45 cents, or 0.68%, to $66.14 a barrel by 0826 GMT, while U.S. West Texas Intermediate crude futures were down 49 cents, or 0.77%, to $63.39.

Get the Latest US Focused Energy News Delivered to You! It’s FREE:

U.S. President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.

The talks follow increased U.S. pressure on Russia, raising the prospect that penalties on Moscow could also be tightened if a peace deal is not reached.

Trump set a deadline of last Friday for Russia, which invaded Ukraine in February 2022, to agree to peace or have its oil buyers face secondary sanctions. At the same time, Washington is pressing India to reduce purchases of Russian oil.

UBS has lowered its year-end Brent crude forecast to $62 a barrel from $68, citing higher supply from South America and resilient output from sanctioned countries.

An Exxon Mobil-led consortium began crude production four months earlier than expected at a fourth floating production, storage and offloading vessel in Guyana, Exxon said on Friday.

Consultancy Energy Aspects estimated Indian refiners have already purchased WTI totalling 5 million barrels for August loadings, with an incremental 5 million barrels possible depending on tender outcomes, and 5 million barrels for September loadings.

Trump’s higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to weigh on economic activity as they force changes to supply chains and fuel higher inflation.

Separately, data from the National Bureau of Statistics on Saturday showed China’s producer prices fell more than expected in July.

Reporting by Mohi Narayan in New Delhi and Colleen Howe in Beijing; Editing by Jamie Freed, Kirsten Donovan