Oil prices fell on Tuesday in Asian trading as investors assessed the possibility of peace negotiations between Russia and Ukraine, raising speculation that an eventual resolution could ease sanctions on Russian crude exports.
By 2:35 pm AEST (4:35 am GMT), Brent crude futures declined 40 cents, or 0.6%, to US$66.20 per barrel, while U.S. West Texas Intermediate crude futures for October delivery slipped 43 cents, or 0.7%, to $62.27 per barrel.
Market sentiment shifted after U.S. President Donald Trump announced progress on efforts to broker peace. Following discussions at the White House with Ukrainian President Volodymyr Zelenskyy and European leaders, Trump said he had spoken with Russian President Vladimir Putin to begin arranging a meeting with Zelenskyy.
Trump posted on Truth Social: "During the meeting we discussed Security Guarantees for Ukraine, which Guarantees would be provided by the various European Countries, with a coordination with the United States of America. Everyone is very happy about the possibility of PEACE for Russia/Ukraine.
"At the conclusion of the meetings, I called President Putin, and began the arrangements for a meeting, at a location to be determined, between President Putin and President Zelenskyy. After that meeting takes place, we will have a Trilat, which would be the two Presidents, plus myself."
The proposed summit, which would bring together Trump, Putin and Zelenskyy, marks a new stage in U.S. diplomacy over the war. Zelenskyy described his direct talks with Trump as "very good" and said the two discussed the importance of U.S. security guarantees for Ukraine.
Trump has urged a swift resolution to what he called Europe’s deadliest war in 80 years. However, concerns remain in Kyiv and among its allies that Washington could push for a settlement favourable to Moscow.
