%Oil prices are sliding lower as commodities traders await outcomes from the meeting in Alaska between U.S. President Donald Trump and Russian leader Vladimir Putin.
There is speculation that the meeting could lead to an easing of the sanctions imposed on Mosco over the Ukraine war, a development that could see Russian oil flow more freely, adding to global supply.
Brent crude oil, the international standard, is down 1.20% on Aug. 15 and trading at $66.05 U.S. per barrel.
West Texas Intermediate (WTI) crude oil (TVC: $USOIL), the U.S. benchmark, is down 1.34% and trading at $63.39 U.S. a barrel.
Crude oil prices have been slumping on rising fears of global oversupply as energy demand around the world weakens.
That oversupply could be exacerbated if Russian oil flows increase following the Trump-Putin summit, say traders and commodities analysts.
At the Trump-Putin meeting, a ceasefire in Ukraine is at the top of the agenda. Trump has said he believes Russia is prepared to end the war in Ukraine.
However, Trump has threatened to impose secondary sanctions on countries that buy Moscow’s oil if the peace talks don’t advance.
Whether sanctions on Russia are eased or tightened further remains to be seen. However, President Trump does not have a track record of being tough on Putin or Russia.
At the same time, weaker economic data out of China has increased worries about fuel demand in the world’s biggest importer of oil and other energy products.
The latest Chinese government data showed factory output growth slumped to an eight-month low and retail sales growth expanded at its slowest pace since December 2024.
Throughput at Chinese refineries rose 8.9% year-over-year in July, but that was down from June levels.
%BankofAmerica (NYSE: $BAC) recently said that they were widening their forecast for a global oil surplus, citing growing supplies from the Organization of the Petroleum Exporting Countries (OPEC+) and Russia.
Bank of America now forecasts an average surplus of 890,000 barrels per day of oil from July 2025 through June 2026.
The bank’s forecast comes after the International Energy Agency (IEA) said earlier this week that the oil market now looks “bloated.”
