Putin and Trump to meet; oil prices rise amid trade truce and Ukraine hopes

Global oil prices are rising amid the extension of a trade truce between the U.S. and China, but the upcoming meeting between Russian President Vladimir Putin and U.S. President Donald Trump on Ukraine could alter market dynamics, Reuters reports.

The three-month extension of the “tariff truce” has raised hopes for compromise and eased threats of a trade blockade that could slow economic growth and reduce oil demand.

Senior market analyst Priyanka Sachdeva of Phillip Nova says the price increase is supported by signs of weakening U.S. labor market, fueling expectations of a Federal Reserve rate cut in September. Attention is also focused on U.S. inflation data that may influence further Fed policy.

Germany’s Commerzbank notes that if the Putin-Trump meeting leads to a ceasefire or peace agreement on Ukraine, Trump might suspend secondary tariffs imposed on India last week. Otherwise, harsher sanctions on other Russian oil buyers, including China, are possible.

Last week, Trump set a deadline for Russia to agree on peace, warning secondary sanctions on Russian oil buyers if no deal is reached. The U.S. continues to pressure India and China to reduce Russian oil imports.