Oil markets rallied Monday as Brent crude for October rose 0.5% to $66.90 per barrel, while U.S. West Texas Intermediate (WTI) climbed 0.4% to $64.13. This rebound came after both benchmarks dropped more than 4% the prior week.
The rise comes ahead of a critical U.S.–Russia summit scheduled for August 15, where President Trump will meet with President Putin to discuss a potential end to the Ukraine war. Markets are watching closely as Washington increases pressure on key Russian oil buyers, including China and India, by threatening steep import tariffs.
Analysts at ING note that despite the potential for de-escalation, it’s “difficult to see a quick solution,” as Ukraine is unlikely to cede its territory. Any progress, though, would reduce sanction-related risks and likely push prices down.
Meanwhile, weak economic signals from China — namely flat consumer inflation and declining producer prices — suggest limited demand support from the country, even as markets await U.S. CPI data this week for inflation clues.
Why This Matters:
- Short-term volatility is expected as market participants gauge outcomes from the U.S.–Russia meeting.
- Geopolitical moves like proposed tariffs on major Asian buyers may continue to buoy prices, while softer demand indicators could cap the rally.
- The forthcoming U.S. CPI report may influence expectations around Federal Reserve interest rate policy, and in turn, oil demand sentiment.
Stay informed with our timely analysis and updates on how global events shape energy markets—and what lies ahead for Pakistan’s consumers and the wider economy.
