August 07, 2025 | 04:32 PM GMT+05:00

Oil prices steadied on Thursday after early gains were trimmed following confirmation from the Kremlin that Russian President Vladimir Putin will soon meet U.S. President Donald Trump, raising hopes for a diplomatic thaw in the Ukraine conflict.

Brent crude settled at $67.38, down $0.49 (0.73%), while WTI slipped $0.46 (0.71%) to $64.81 per barrel.

This comes after a sharp decline in prices the previous day, touching an eight-week low, as Trump hinted at negotiation progress with Moscow.

Kremlin aide Yuri Ushakov confirmed the leaders' first meeting since 2021 could take place soon. Meanwhile, the U.S. is preparing secondary sanctions, potentially against China, to tighten pressure on Russia.

Analysts say prices were supported by a 3 million-barrel drop in U.S. crude inventories and strong Saudi pricing for Asia. However, diplomatic headlines limited upward momentum.

China’s July crude imports rose 11.5% YoY, despite a monthly dip, while Saudi Arabia hiked its September selling price, citing tight supply.

Market sentiment remains cautious after Trump imposed a 25% tariff on Indian goods over Russian oil purchases and hinted at new tariffs on China.

Russia is currently the world’s second-largest oil producer, behind the U.S.