Oil prices declined on Tuesday as investors reacted to renewed diplomatic efforts between Russia, Ukraine, and the United States, which could eventually ease sanctions on Russian crude and increase global supply.
Brent crude futures slipped 48 cents, or 0.72%, to $66.12 a barrel, while U.S. West Texas Intermediate (WTI) September delivery fell 40 cents, or 0.63%, to $63.02. The more active October WTI contract dropped 46 cents, or 0.73%, to $62.24 a barrel.
The pullback followed modest gains of around 1% in the previous trading session, showing how quickly markets are adjusting to political developments.
The decline came after U.S. President Donald Trump confirmed discussions with Russian President Vladimir Putin following his meeting with Ukrainian President Volodymyr Zelenskiy and European leaders in Washington on Monday.
Trump revealed that arrangements were underway for a direct meeting between Putin and Zelenskiy, potentially leading to a trilateral summit involving all three leaders.
Analysts say oil markets are responding to the possibility of reduced geopolitical risk. Suvro Sarkar, lead energy analyst at DBS Bank, noted that while no immediate ceasefire is expected, the softened U.S. stance on secondary sanctions is easing fears of further supply disruptions.
Zelenskiy described his talks with Trump as “very good,” highlighting discussions on U.S. security guarantees, though the extent of Washington’s commitments remains uncertain.
For now, oil traders continue to watch diplomatic developments closely, with market movements reflecting hopes for de-escalation but also the uncertainty of geopolitical negotiations.