Trump’s statements about Russia stabilized oil prices: how it affected the global market

World oil prices have leveled off after a sharp decline amid US-Russia talks in Alaska. Donald Trump announced that he has no plans to raise tariffs on Russian oil buyers, allaying some market concerns about a reduction in Russian crude supplies. Brent is trading around $65.79 per barrel, while WTI is at $62.82.

This is reported by Reuters .

It is noted that after the negotiations in Alaska, the oil market received a signal to maintain the status quo in US-Russia relations. Trump said that raising tariffs on Russian oil, especially for China, is not currently being considered, although he reserves the right to return to this issue within 2-3 weeks.

Analysts note that such rhetoric has helped stabilize oil prices, as no additional restrictions have been imposed on Russian exports yet. Accordingly, the risk of an immediate reduction in supplies to the world market has disappeared, which has partially relieved the pressure on Brent and WTI quotes.

Oil prices as of Monday:

• Brent : $65.79 per barrel (−0.09% from the previous day’s close).
• WTI : $62.82 per barrel (+0.03% compared to the previous day’s close).

Experts emphasize that the oil market is in a wait-and-see position. Investors are assessing how much additional Russian oil volumes will be able to enter the global supply pool if the military actions in Ukraine end.

This week, investors will be focused on the speech of US Federal Reserve Chairman Jerome Powell at the Jackson Hole conference. Analysts expect that he may announce plans to reduce interest rates in the US, which will further affect the oil market and the dynamics of global financial flows.

The softening of US rhetoric towards Russia has temporarily stabilized oil prices, but the market remains uncertain. The main factors for further price dynamics are US policy decisions, Russian supply volumes, and possible economic signals from the Fed.

Recall that in July , Russia exported more than 25 million tons of oil and petroleum products by sea . More than half of the volume was transported by tankers from G7+ countries.

It was previously reported that the Russian economy is under serious pressure due to the war in Ukraine . The growth of the Russian economy is slowing, oil revenues are falling, the budget deficit has reached a three-decade high, and inflation and interest rates remain high.

In early August, it became known that Russia has been reducing seaborne oil exports for the third week in a row , but the current losses remain insignificant so far.

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