Oil Steadies Near One-Week High Before High-Stakes Trump-Putin Summit

Market sentiment was lifted after Trump issued a warning of “consequences” should Russia obstruct a Ukraine peace deal, heightening concerns about potential supply disruptions.

Oil demand expectations received a further boost from Japan, one of the world’s largest crude importers, after new data showed stronger-than-anticipated economic growth.

Source : Freepik

Oil prices extended their upward momentum on Friday, touching fresh one-week highs as markets awaited a high-stakes meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska.

The summit, set for later in the day, is expected to focus heavily on efforts to secure a ceasefire in the ongoing Ukraine war. Brent crude futures rose 16 cents, or 0.2 per cent, to $67.00 a barrel around early morning Friday, while US West Texas Intermediate (WTI) crude gained 14 cents, also 0.2 per cent, to trade at $64.10, reported Reuters.

Market sentiment was lifted after Trump issued a warning of “consequences” should Russia obstruct a Ukraine peace deal, heightening concerns about potential supply disruptions. The conflict has already limited the flow of Russian oil into global markets, keeping prices supported.

Economic Data from Japan Lends Additional Support

Oil demand expectations received a further boost from Japan, one of the world’s largest crude importers, after new data showed stronger-than-anticipated economic growth. Figures released by the Japanese government indicated the economy expanded at an annualised rate of 1.0 per cent in the April–June quarter, surpassing the median forecast of 0.4 per cent. On a quarterly basis, GDP rose 0.3 per cent compared with an estimated 0.1 per cent increase.

Robust economic activity typically signals higher energy consumption, lending further support to oil prices.

However, gains were tempered by concerns that US interest rates could remain elevated for longer. Recent inflation data in the US came in higher than expected, while job numbers disappointed, fuelling speculation that the Federal Reserve may maintain its current policy stance — a scenario that generally dampens oil demand.

Trump Links India Tariffs to Russia’s Willingness to Meet

The oil market was also digesting comments from Trump suggesting that his recent decision to impose steep tariffs on Indian goods over New Delhi’s purchase of Russian oil may have influenced Moscow’s outreach for talks. Speaking to Fox News on Thursday, just a day before his meeting with Putin in Anchorage, Trump said he believed the tariff move had “an impact.”

“I think everything has an impact,” he said, noting that after being informed of the new duties, India “essentially” stopped buying Russian crude. He claimed that this development may have contributed to Russia’s decision to seek discussions with Washington.

“When you lose your second largest customer, and you’re probably going to lose your first largest customer, I think that probably has a role,” Trump remarked, referring to India’s position as Russia’s second-biggest oil buyer, with China remaining its largest.

Trump also expressed optimism about the meeting, adding that he believes Russia is prepared to bring the Ukraine conflict to an end.

Trump: Tariffs On India Over Russian Oil May Have Prompted Moscow Talks Request