Oil prices fell for a sixth straight session on Thursday, as hopes for a diplomatic breakthrough between the U.S. and Russia continued to weigh on market sentiment.
Brent crude settled at $66.43, down 46 cents, or 0.7%, while U.S. West Texas Intermediate (WTI) closed at $63.88, a drop of 47 cents, or 0.7%. The decline follows Wednesday’s roughly 1% drop in both benchmarks, which brought prices to their lowest levels in eight weeks.
Markets reacted to news that Russian President Vladimir Putin and U.S. President Donald Trump are expected to meet in the coming days, fueling speculation that negotiations could lead to an end to the war in Ukraine. Kremlin aide Yuri Ushakov confirmed plans for the summit, while the White House indicated a meeting could take place as early as next week.
Despite the diplomatic overtures, the U.S. is continuing preparations to impose secondary sanctions on major buyers of Russian oil. On Wednesday, Trump imposed an additional 25% tariff on Indian goods, citing India’s ongoing crude purchases from Moscow. The new import duties are set to take effect on August 28, and further tariffs on China, Russia’s largest oil customer, are also under consideration.
In the background, bearish sentiment is being driven by expectations of rising supply. OPEC+ has agreed to raise output by 547,000 barrels per day in September, adding to oversupply concerns that have dragged oil down more than 9% over the past week, according to analysts at Ritterbusch and Associates.
Still, some supportive factors helped limit the day’s losses. The U.S. Energy Information Administration reported a larger-than-expected 3 million barrel draw in crude inventories, while Saudi Arabia raised prices for Asian buyers for a second consecutive month on signs of tight supply. Additionally, Chinese crude imports rose 11.5% year-over-year in July, despite a monthly dip.
As traders look ahead, focus remains squarely on the outcome of the anticipated U.S.–Russia summit and any potential escalation or delay in secondary sanctions targeting Russian energy flows.