WASHINGTON (dpa-AFX) - Crude oil traded lower on Friday amid expectations of a positive outcome from the meeting between the presidents of the US and Russia today. The possibility of further talks remains unclear at this point.
WTI Crude Oil for September delivery was last seen down by $1.20 (or 1.88%) at $62.76 per barrel.
To end the long, three-plus-year conflict between Russia and Ukraine, which began with the former's invasion of its neighbor in 2023, some days before, US President Donald Trump gave an ultimatum to Russia to end the conflict or face sanctions, a threat which Russia ignored.
Stepping up efforts to broker a ceasefire, today, Donald Trump is meeting with Russian President Vladimir Putin in Anchorage, Alaska, around 03:00 p.m. EST.
Hours before the summit was set to begin, Russia reportedly launched a ballistic missile into Dnipropetrovsk in central Ukraine, injuring at least one.
While Trump had earlier warned Russia of severe consequences if it continues the war post the summit, he also expressed confidence that something will come of the meeting.
Russia remains under Western sanctions for its oil exports. Trump government has targeted buyers of Russian oil, majorly India and China with 'penalty tariffs.'
India alone sourced roughly 1.8 million barrels per day from Russia in the first half of 2025, equivalent to 37% of its total crude imports.
A disagreement could put upside pressure on oil prices along with pressure on Russia as well as Russian oil buyers.
Oversupply concerns exist in the likelihood of Ukraine conceding some territory to Russia or if the US relaxes its sanctions against Russia as either could flood the market with Russian oil.
Data from Japan showed that its GDP grew 0.3% quarter-on-quarter in the second quarter of 2025 and the economy advanced 1.0% on an annualized basis.
Being one of Asia's key consumer, this data signals strong oil demand from the country.
With US inflation slowly rising and revised hiring figures showing slowing in the recent months, a Reuters poll revealed that most economists expect that the Fed may cut borrowing rates in September and possibly another time by the end of the year.
Crude oil being a dollar-denominated commodity, traders are focused on the upcoming Fed Chair's keynote address at the Jackson Hole Symposium to get directions on rate cuts amid the recent OPEC+ decision to increase output versus EIA forecast revealing falling energy demand.
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