Oil under pressure ahead of Putin-Trump summit

• Brent headed for steep weekly loss
• Putin-Trump summit may determine near to medium term outlook
• US-China truce expiration also in focus
• Technical levels: $71.70, $69.00 and $65.00

President Vladimir Putin and Donald Trump are expected to meet for summit talks within the next few days.

Although the details of the meeting remain unclear, this development has lifted sentiment and raised hopes for an end to Russia’s war in Ukraine. Signs of a potential resolution may lead to the lifting of sanctions on Russia, allowing its oil exports to resume fully. This could weigh on oil already grappling with fears over a potential glut later in 2025 after OPEC+ relaxed output curbs.

Beyond the Putin-Trump summit, oil benchmarks may also be impacted by the preliminary US-China trade truce. Without an extension on Tuesday, global growth fears may return – sending oil prices lower amid fears over the demand outlook.

Looking at the charts, Brent is under pressure with prices trading below the 50, 100 and 200-day SMA.

• Weakness below $67.40 may encourage a decline toward $65.00and $64.15.
• Should prices push back above the 100-day SMA, bulls may target $69.00 and the 200-day SMA.