Oil prices continued to fall amid talk of a Trump-Putin meeting

October Brent crude futures fell by 4.5% to $66.5/barrel (-3.8% per month) in the week, and US WTI crude fell by 5% to $63/barrel (-6%) amid OPEC+'s decision to increase production and expectations of a ceasefire between Russia and Ukraine, as Trump agreed to meet with Putin on August 15 in Alaska.

 

After Bloomberg News reported on Friday that the United States and Russia are seeking to reach an agreement to end the war in Ukraine (which could lead to a reduction in US sanctions on Russian energy exports), oil prices fell to a 2-month low during the session.

 

The plan proposed by the Russian Federation envisages the withdrawal of Ukrainian troops from the eastern part of Donbas, followed by the cessation of the offensive in the Kherson and Zaporizhia regions of Ukraine along the current front lines, as well as the withdrawal of Russian troops from the Kharkiv and Sumy regions.

 

The Ukrainian President and leaders of European states have already stated that such conditions are unacceptable, and first it is necessary to achieve an unconditional ceasefire throughout the conflict area, and only then begin negotiations.

 

Oil prices rose last week after President Trump imposed a 50% tariff on Indian exports to the US over India's purchases of Russian crude oil, and amid Trump's threats to impose similar tariffs on all countries that buy Russian oil.

 

The decline in oil prices has increased pressure on vegetable oils, but quotes have fallen by only 1-2%, as they are now more responsive to real demand on the global market, which remains quite high.