WASHINGTON (dpa-AFX) - Crude oil prices slumped on Tuesday ahead of an upcoming meeting between US and Russian presidents in Alaska, coming Friday, as the outcome is expected to heavily push or pull oil prices.
WTI Crude Oil for September delivery was last seen trading down by $0.88 (1.38%) at $63.08 per barrel.
Hours before the previous deadline given to China to strike a trade deal with the US was about to expire yesterday, US President Donald Trump signed an executive order extending the trade truce for another 90 days (until November 10).
This lengthy pause, given for the second time, gives both countries enough time to work out the differences in agreements.
As high tariffs result in slowdown in global growth and reduce fuel demand resulting in a drag on oil prices, this news was welcomed by oil traders.
Trump is set to meet the Russian President Vladimir Putin on Friday in Alaska to discuss ways to end Russia's three-plus-year war with Ukraine.
Russia is facing a sanctions threat from the US, as it has ignored US pleas to end the war.
If the meeting materializes positively towards a peace agreement, secondary sanctions on India could go away.
In its monthly report, OPEC raised its forecast for oil demand for 2026 while trimming its forecast for growth supply from the US and other non-OPEC+ producers (to 630,000 barrels per day).
The group had estimated a rise by 1.38 million barrels per day of oil demand; 100,000 barrels more than expected.
The report also forecast an improvement in the global economic growth for 2025 to 3%, citing new US trade agreements with its various partners.
In essence, the projection reveals higher demand and a drop in supply growth.
In July, the alliance had increased production by 335,000 bpd, and recently, the cartel decided to increase output in September.
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