Crude oil prices dropped on Thursday for a sixth consecutive session after Russian President Vladimir Putin confirmed a meeting with US President Donald Trump in the coming days, raising expectations for a diplomatic end to the war in Ukraine.
Brent crude futures lost 46 cents or 0.7 per cent to quote at $66.43 a barrel and the US West Texas Intermediate (WTI) crude futures depreciated by 47 cents or 0.7 per cent to settle at $63.88 a barrel.
The Russian government said on Thursday that Presidents Trump and Putin would meet in the coming days in what would be the first summit between leaders of the two countries since 2021, confirming what the US had previously said about Mr Trump meeting his Russian counterpart as soon as next week.
The US, however, continued preparations to impose secondary sanctions on major buyers of Russian energy products to try to pressure Moscow to end the war in Ukraine.
Russia is the world’s second-biggest producer of oil behind the US
The US President imposed an additional 25 per cent tariff on Indian goods on Wednesday, citing the country’s continued imports of Russian oil. The new import tax will take effect on August 28.
This order increases the total tariff rate on Indian exports to the United States to 50 per cent, the highest level for any country under current US policy.
Bloomberg reported on Thursday that the biggest Indian state-owned refiners are pulling out of spot purchases of Russian crude for cargoes loading in October.
India is the second-biggest buyer of Russian oil after China and President Trump has also said he could announce further tariffs on China.
Market analysts noted that additional increases by the Organisation of the Petroleum Exporting Countries and its allies including Russia, together known as OPEC+, remain as the overriding negative consideration while continued tariff uncertainties are still providing the main argument favouring lower price levels.
OPEC+ on Sunday to raise oil production by 547,000 barrels per day for September.
The price decline came despite crude stockpile drawdown in the US and higher Saudi prices for Asia and solid Chinese crude imports in July.
The US Energy Information Administration (EIA) said on Wednesday that US crude oil stockpiles fell by 3 million barrels to 423.7 million barrels in the week ended August 1.
In China, crude oil imports in July fell by 5.4 per cent from June but were still up 11.5 per cent year-on-year while Saudi Arabia raised its September crude oil prices for Asian buyers, the second monthly rise in a row, on tight supply and robust demand.