Although the details of the meeting remain unclear, this development has lifted sentiment and raised hopes for an end to Russia’s war in Ukraine. Signs of a potential resolution may lead to the lifting of sanctions on Russia, allowing its oil exports to resume fully. This could weigh on oil already grappling with fears over a potential glut later in 2025 after OPEC+ relaxed output curbs.
Beyond the Putin-Trump summit, oil benchmarks may also be impacted by the preliminary US-China trade truce. Without an extension on Tuesday, global growth fears may return – sending oil prices lower amid fears over the demand outlook.
Looking at the charts, Brent is under pressure with prices trading below the 50, 100 and 200-day SMA.