Quick overview

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Crude oil prices declined in the first trading session of the week. The US failed to increase pressure on Russia to halt the conflict in Ukraine by taking additional steps to impede Russian oil exports following a Friday meeting between the two presidents. Brent crude futures fell 0.4% to $65.59 per barrel, while West Texas Intermediate crude was down 0.29% to trade at $62 a barrel.

President Donald Trump came away from the meeting more aligned with Moscow’s demands for a peace agreement rather than a ceasefire first after meeting Russian President Vladimir Putin in Alaska on Friday.

Trump will meet with European leaders and Ukrainian President Volodymyr Zelensky on Monday in hopes of reaching a swift peace deal to end the continent’s bloodiest conflict in eight decades. Concerns about a disruption in Russian supply were alleviated when the president stated on Friday that he might have to consider retaliatory tariffs on nations like China for purchasing Russian oil “in two or three weeks” rather than immediately.

Russia’s largest oil buyer is China, the world’s largest oil importer. The main focus of discussions was the secondary tariffs aimed at major Russian energy importers, and President Trump has stated that he will not pursue further incremental action on this front, at least not toward China.

The status quo remains unchanged. While Ukraine and some European leaders will object to the land-for-peace agreement, Moscow will not back down from its territorial demands.

Investors are also closely watching remarks made by Federal Reserve Chairman Jerome Powell during this week’s Jackson Hole meeting for hints about the interest rate cuts that might propel stocks to further all-time highs. He will likely remain data-dependent and non-committal, especially since there is still one more payroll and CPI (Consumer Price Index) report before the FOMC meeting on September 17.