Oil prices experienced a slight decline in early trading on Friday, positioning themselves for a weekly loss, amid prevailing uncertainty regarding global energy supplies following the agreement between U.S. President Donald Trump and Russian President Vladimir Putin to convene in Hungary to discuss the resolution of the conflict in Ukraine. Brent crude futures experienced a decline of 8 cents, representing a decrease of 0.13%, settling at $60.98 a barrel at 0030. Concurrently, U.S. West Texas Intermediate futures decreased by 9 cents, or 0.16%, to reach $57.37.
On a weekly basis, both benchmarks experienced a decline of nearly 3%, influenced in part by the International Energy Agency’s forecast indicating a burgeoning supply glut in 2026. On Thursday, Trump and Putin reached an agreement for another summit concerning the war in Ukraine, a development that caught many off guard, particularly as Moscow expressed concerns over potential new U.S. military assistance to Kyiv. The meeting is anticipated to occur within the forthcoming two weeks in Budapest. The development occurred as Ukrainian President Volodymyr Zelenskiy was en route to the White House on Friday to advocate for increased military assistance, including U.S.-manufactured long-range Tomahawk missiles, while Washington exerted pressure on India and China to cease purchasing Russian oil.
“Concerns of tighter supplies were eased after it was announced that Trump would be meeting with Putin to discuss ending the war in Ukraine,” stated Daniel Hynes. Additionally impacting prices, the Energy Information Administration reported on Thursday that U.S. crude inventories rose by 3.5 million barrels to 423.8 million barrels last week, contrasting with analysts’ expectations for an increase of 288,000 barrels.
The larger-than-anticipated increase in crude inventory can be attributed primarily to reduced refining utilization as refineries enter their fall maintenance periods. The data indicated an increase in U.S. production to 13.636 million barrels per day, marking the highest level recorded to date. In the previous session, Brent settled 1.37% lower while U.S. WTI closed down 1.39%, marking their lowest levels since May 5.