Oil prices ticked lower during Asian trade on Friday, heading for a weekly decline as investors weighed global supply risks following news that United States President Donald Trump and Russian President Vladimir Putin plan to meet in Hungary to discuss ending the war in Ukraine.
By 3:45 pm AEDT (4:45 am GMT), Brent crude futures eased 8 cents, or 0.1%, to US$60.98 per barrel, while U.S. West Texas Intermediate (WTI) futures also fell 8 cents, or 0.1%, to US$57.38 per barrel.
Both benchmarks dropped sharply in the previous session, with Brent settling 1.37% lower and WTI down 1.39%, marking their weakest levels since 5 May.
On a weekly basis, Brent and WTI were down nearly 3%, pressured by the International Energy Agency’s forecast of a widening supply glut in 2026.
Trump and Putin’s agreement to hold another summit on the Ukraine war caught markets by surprise, coming as Moscow reportedly feared fresh U.S. military aid for Kyiv.
The talks could take place within the next two weeks in Budapest.
The diplomatic development came as Ukrainian President Volodymyr Zelenskyy was headed to Washington to press for additional U.S. support, including long-range Tomahawk missiles, while the U.S. continued urging India and China to curb Russian oil purchases.
"Concerns of tighter supplies were eased after it was announced that Trump would be meeting with Putin to discuss ending the war in Ukraine," ANZ analysts noted.
Adding further downward pressure, the U.S. Energy Information Administration reported that domestic crude inventories rose by 3.5 million barrels last week to 423.8 million, far exceeding analysts’ expectations for a 120,000-barrel rise.
