Oil Declines as Trump-Putin Talks Raise Specter of More Supply

Oil prices extended losses after their steepest weekly drop since late June, with Brent crude hovering NEAR $66 a barrel and West Texas Intermediate above $63. The decline comes ahead of a pivotal meeting between US and Russian leaders, fueling speculation about a potential resolution to the Ukraine conflict that could unlock additional supply.

Market sentiment remains fragile as OPEC+ continues to restore production faster than initially anticipated, dismantling 2023's output curbs. This supply resurgence coincides with growing concerns about economic headwinds dampening demand. The delicate balance between these forces has erased over 10% of oil's value this year.

Diplomatic developments loom large, with Washington and Moscow reportedly negotiating terms that WOULD formalize Russian control over occupied Ukrainian territories. While the proposed agreement faces significant political hurdles, its mere discussion has introduced new variables into energy market calculus.