Oil Prices Drop as Peace Talks Start

Oil prices dropped on Tuesday after renewed US-Russia-Ukraine talks raised hopes that sanctions on Russian crude could be eased, boosting supply. The new talks between Washington and Moscow might also open a path toward reducing geopolitical tensions.

The price of Brent crude oil fell by 48 cents, or 0.72 percent, to $66.12 per barrel at 8:20 GMT on Tuesday. Meanwhile, US West Texas Intermediate (WTI) crude futures for September delivery, which will expire on Wednesday, fell by 40 cents, or 0.63 percent, to $63.02 per barrel. The more active October WTI contract was down 46 cents, or 0.73 percent, at $62.24 a barrel.

However, following a White House meeting on Monday with Ukrainian President Volodymyr Zelenskiy and European allies, US President Donald Trump posted on social media that he had spoken with Russian President Vladimir Putin.

Trump also said that arrangements were being made for a meeting between Putin and Zelenskiy, which could lead to a trilateral summit involving all three leaders.

Suvro Sarkar, lead energy analyst at DBS Bank, said oil prices are largely responding to the outcome of the Trump-Putin and Trump-Zelenskiy meetings.