Quick overview

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Oil prices dropped about $1 on Friday as traders waited for negotiations between Russian leader Vladimir Putin and President Donald Trump that could lift sanctions on Moscow over the Ukraine war. West Texas Intermediate crude futures fell $1.16, or 1.8%, to $62.80, while Brent crude futures declined 99 cents, or 1.5%, to $65.85 a barrel.

Trump said he wanted to see a truce in the Ukraine crisis “today.”

He then traveled to Alaska on Friday for his summit with Putin. Although Trump has stated that he believes Russia is ready to end the conflict, he has also threatened secondary sanctions on countries that buy Russian oil if peace talks fail. Russia expects negotiations to yield results, according to Kremlin spokesman Dmitry Peskov, as stated by Russia’s Interfax news agency.

Recent weaker economic data from China has raised concerns about fuel demand.

Although there was an increase in oil throughput at the world’s second-largest crude consumer, government data revealed that factory output growth fell to an eight-month low, and retail sales growth reached its lowest point since December, negatively impacting market sentiment. In July, refinery throughput in China rose by 8 to 9 percent compared to June, marking its highest level since September 2022.

However, last month, China’s oil product exports increased year-over-year, indicating a decline in domestic fuel demand.