Brent crude settled at $65.79, down 81 cents (−1.22%), while U.S. West Texas Intermediate (WTI) for September delivery — set to expire Wednesday — closed at $62.35, a drop of $1.07 (−1.69%).
The weakness reflected growing bets that diplomatic progress could ease restrictions on Moscow’s exports. President Donald Trump said he had spoken with Russian President Vladimir Putin and that preparations were underway for a meeting involving Putin, Ukrainian President Volodymyr Zelenskiy, and potentially a trilateral summit.
Analysts noted that Trump’s softer tone on secondary sanctions against importers of Russian oil had reduced fears of major supply disruptions. Chinese refiners have already booked 15 cargoes of Russian crude for October and November, partly filling the gap left by weaker Indian demand.
While market participants remain heavily short crude futures, Price Futures Group’s Phil Flynn warned that if a ceasefire fails to materialize, prices could rebound sharply. Others, like TD Securities’ Bart Melek, said a de-escalation that removed sanction threats could see oil drift lower toward their $58 per barrel target for late 2025 and early 2026.