Oil prices were steady during Asian trade on Monday, recovering from early weakness, as concerns over Russian supply eased after U.S. President Donald Trump held talks with Russian President Vladimir Putin.
By 3:15 pm AEST (5:15 am GMT), Brent crude futures were up 2 cents, or 0.03%, at $65.87 per barrel, while U.S. West Texas Intermediate rose 6 cents, or 0.1%, to $62.86 per barrel.
The meeting between Trump and Putin in Alaska on Friday ended with both leaders appearing more aligned on pursuing a peace agreement in Ukraine rather than prioritising a ceasefire.
Trump is due to meet Ukrainian President Volodymyr Zelenskyy and European leaders on Monday to push for what he described as a rapid peace deal to end Europe’s deadliest conflict in 80 years.
Markets were further calmed by Trump’s comments on Friday that he did not yet see the need to impose retaliatory tariffs on countries such as China for purchasing Russian oil, though he added that action might be required “in two or three weeks”.
In a note to clients, ANZ analysts said: “While the summit ultimately ended without any agreement, there was likely enough progress to suggest supply risks are lower. The presidents agreed that the U.S. would be able to offer Ukraine security guarantees.
"This comes ahead of a meeting in Washington between European leaders, President Zelensky and Trump. The U.S. President also said he would hold off on raising tariffs on Chinese goods over purchases of Russian oil, citing progress he made with Putin.”
Attention is also turning toward the Federal Reserve’s Jackson Hole meeting later this week, where Chair Jerome Powell is expected to provide clarity on the pace of rate cuts.
