Oil Prices Extend Losses as Traders Eye US-Russia Summit, Inflation Data

Oil prices declined in Asian trading on Monday, adding to sharp losses from last week as expectations of progress in U.S.-Russia talks dampened geopolitical risk premiums, while weak inflation data from China weighed on demand sentiment.

Brent crude futures for October delivery slipped 0.8% to $66.08 a barrel, while West Texas Intermediate futures fell 0.8% to $62.47 by 21:35 ET (01:35 GMT). Both benchmarks lost more than 4% last week.

Peace Prospects Pressure Risk Premium

The U.S. and Russia are set to hold a summit on Aug. 15, with President Donald Trump and President Vladimir Putin expected to discuss ending the war in Ukraine. The planned talks follow Washington’s moves to curb Russia’s oil exports, including targeting major buyers China and India.

Trump imposed tariffs of up to 50% on India to deter purchases of Russian crude and threatened similar action against China. While such measures offered modest support to prices last week, broader reciprocal tariffs on key trading partners have stoked concerns over weaker global oil demand.

China Inflation Misses, US CPI Next

Chinese inflation data added to the bearish tone. July’s consumer price index was flat, while producer prices fell more than expected, underscoring a deflationary trend in the world’s top oil importer. The reading follows weeks of lackluster economic indicators, suggesting limited traction from Beijing’s stimulus and disruptions from extreme July weather.

Traders are also awaiting the U.S. July consumer price index, due Tuesday. Signs of cooling inflation could bolster expectations for a Federal Reserve rate cut in September, potentially influencing fuel demand in the world’s largest oil consumer — even as Trump’s tariff plans threaten to push prices higher.