Oil Prices Slide to Five-Month Lows Amid Trump-Putin Meeting Plans and Oversupply Concerns

Oil prices continued to decline in Asian trading on Friday, hitting their lowest levels in five months as global markets reacted to geopolitical developments and growing concerns about oversupply. Brent crude futures slipped 0.2% to $60.95 per barrel, while West Texas Intermediate (WTI) fell 0.2% to $57.36 per barrel by 21:14 ET (01:14 GMT). Both benchmarks were poised for a third consecutive weekly loss, falling between 2.5% and 2.9%.

The downturn came after U.S. President Donald Trump and Russian President Vladimir Putin agreed to meet in Budapest to discuss ending the war in Ukraine. The announcement followed reports that Trump would also speak with Ukrainian President Volodymyr Zelensky. While no date was set, the meeting marks the leaders’ second encounter since their August summit in Alaska. Analysts said progress toward a Russia-Ukraine ceasefire could pressure oil prices further, as it might lead to easing U.S. sanctions on Moscow and allow Russian oil exports to increase.

Adding to the bearish sentiment, U.S. data showed crude inventories rising by 3.5 million barrels last week, exceeding expectations and signaling weaker demand ahead of the winter season. Although gasoline and distillate stockpiles declined, the overall inventory build sparked concerns about slowing consumption.

Global demand worries were amplified by weak economic data from China and renewed trade tensions with the United States. The International Energy Agency (IEA) further dampened sentiment, forecasting a larger-than-expected supply surplus in 2026 and warning of deteriorating oil demand.

Oil prices briefly found support after Trump suggested India might halt Russian oil imports, but Indian officials offered little clarity. With geopolitical uncertainty, oversupply risks, and weakening demand, crude markets remain under pressure, suggesting further downside potential in the near term.