Oil Prices Slip as Trump Backs Away from Ukraine-Russia Peace Talks

Oil Prices Slip as Trump Steps Back from Ukraine-Russia Peace Talks

Oil prices edged lower after a two-day rally, reacting to indications that US President Donald Trump is retreating from his efforts to broker peace between Ukraine and Russia. Brent crude dipped below $66 per barrel, while West Texas Intermediate (WTI) hovered near $63.

Trump had earlier stated that Ukraine and Russia would “immediately” begin ceasefire negotiations, but suggested the talks might proceed without US involvement and without additional pressure on OPEC+ producers. This cautious stance has tempered the recent optimism that had helped crude prices rebound this month after a sharp 16% drop in April. (Bloomberg)

Highlights

• Brent crude slipped below $66; WTI near $63 after earlier gains

• Trump signals possible US withdrawal from Ukraine-Russia ceasefire talks

• Oil rallied this month on easing US-China trade tensions and improved risk sentiment

• Potential sanction relief for Russia and Iran threatens to add supply to an already oversupplied market

• Iran insists uranium enrichment is non-negotiable, complicating nuclear deal prospects

Iran’s firm position on uranium enrichment remains a major hurdle in ongoing nuclear talks with the US, which affects prospects for sanctions relief, including on Iranian oil exports. Any easing of sanctions could add significant volumes to the global oil supply, potentially pressuring prices further.

Robert Rennie, head of commodity and carbon research at Westpac Banking Corp., noted that both the Ukraine-Russia talks and the Iran nuclear negotiations could take time and have uncertain outcomes. He added that Brent crude currently appears overvalued near $66-$67 and is likely to settle back into a $60-$65 range as OPEC+ gradually restores previously curtailed production.

Highlights

• Uncertainty remains high around peace talks and nuclear negotiations

• OPEC+ production restarts expected to maintain supply-side pressure

• Market likely to oscillate in $60-$65 range amid mixed geopolitical signals