Oil Prices Fall As Ukraine Talks Raise Prospects

Oil prices dropped on Tuesday as traders considered the possibility that talks between Russia, Ukraine, and the U.S. might lead to lifting sanctions on Russian crude, increasing supply. Brent crude futures fell 81 cents (1.22%) to close at $65.79 a barrel, while U.S. West Texas Intermediate (WTI) September futures, expiring Wednesday, dropped $1.07 (1.69%) to settle at $62.35 per barrel. The October WTI contract was down 46 cents (0.73%) at $62.24.

Following a White House meeting with Ukrainian President Volodymyr Zelenskiy and European allies, U.S. President Donald Trump announced plans for a potential trilateral summit with Putin and Zelenskiy. Although no peace deal or ceasefire is imminent, some progress has been made, easing fears of increased sanctions or escalation.

Analysts note that Trump’s softened stance on secondary sanctions has reduced risks of global supply disruptions. Zelenskiy called talks “very good,” with discussions on U.S. security guarantees for Ukraine. If tensions ease, oil could decline toward a $58-per-barrel target in late 2025 or early 2026.