Global oil prices fell for a sixth straight trading session after the Kremlin announced that President Vladimir Putin will meet U.S. President Donald Trump in the coming days, stoking hopes that the war in Ukraine could be de-escalated via talks. That diplomatic prospect removed some of the geopolitical risk premium that had been propping up crude. Reuters
Brent crude settled down 0.7% at US$66.43 a barrel, while West Texas Intermediate (WTI) slipped 0.7% to US$63.88 a barrel, leaving both benchmarks at their lowest closes since early June. The Reuters market report cited these settlements as part of the six-day decline.
Traders said the possible summit, together with other demand-side concerns, encouraged position-squaring and risk-reduction across commodity markets — a dynamic that pushed oil lower through the week.
Supply shifts and trade tensions add downward pressure
Beyond diplomacy, rising supply prospects from OPEC+ and policy moves in major economies have also weighed on prices. OPEC+ recently signalled output increases for September, while fresh U.S. tariff measures and trade frictions have injected uncertainty about near-term demand growth. Those supply and demand signals together compounded the rout.
Market watchers are also parsing U.S. policy comments about secondary sanctions and tariffs that could alter global oil flows — for instance, moves aimed at buyers of discounted Russian crude. Such policy levers can swing market psychology quickly, even if physical flows take longer to change.
For investors, the near term looks volatile: further diplomatic headlines or any change in OPEC+ plans could reverse the recent decline, while persistent trade worries would keep a lid on prices.
Local context — what it means for Singapore and consumers
For Singapore readers, crude price moves feed through to fuel and transport costs, aviation jet fuel and wider inflationary pressures. At the settlement prices above, using an August 2025 USD–SGD rate of 1 USD = 1.2834 SGD, the equivalents work out to about S$81.98 per barrel for WTI and S$85.26 per barrel for Brent (rounded). The FX reference used for these conversions is the daily USD/SGD market data.
Although Singapore is a small domestic market, regional fuel price moves affect jet fuel procurement, petrol pump prices and logistics costs that matter to households and businesses. Policymakers and firms will be watching the diplomatic thread closely because a breakthrough could remove a major source of upward pressure on oil markets; conversely, any deterioration would likely reverse the recent slump.