Oil is falling today, waiting for the results of the US-Russian talks
Oil prices witnessed a decline during Friday's trading in the Asian period, after recording a significant rise in the previous session, as investors ' attention is turning towards the upcoming meeting between US President Donald Trump and his Russian counterpart Vladimir Putin, which may cause major shifts in the future of Russian energy exports and global flows.
Prices fall as market focuses on talks
The data showed a decline in benchmark Brent crude by 0.4% to 66.56 dollars per barrel, while West Texas Intermediate crude fell by 0.5% to 63.63 dollars, after ending the previous session with a rise of about 2%.
This volatility comes in light of the market's state of anticipation about any possible developments in US-Russian relations, especially regarding the sanctions imposed on Russia, the second largest oil producer within the OPEC alliance.
US sanctions and possible changes in oil flows
It is noteworthy that any amendment to the US sanctions on Russia may reshape the map of global oil flows, which has witnessed significant unrest since the beginning of the war in Ukraine.
Russia has increasingly relied on the export of oil at reduced prices to major customers such as China and India, which has affected the balance of the global market.
Challenges facing the market: oversupply and weak demand
In addition to geopolitical factors, the oil market is facing increasing pressure due to expectations of a significant oversupply during the coming period, as well as doubts surrounding the strength of global demand for crude, especially with slowing economic growth in some major countries.
However, it is expected that oil trading during the current week will witness a relative calm while waiting for clearer signals from the global market.
It is noteworthy that the meeting between Trump and Putin may represent a turning point in global energy policies, especially with the possibility of any agreement between them affecting the severity of Western sanctions and Russian export routes, which makes investors in a cautious state of anticipation for any new developments.
