Oil Markets Heading Towards Calm After Alaska Summit.. Awaiting Washington Meeting

Oil markets are expected to experience relative stability at the opening of trading on Sunday, following talks between U.S. President Donald Trump and Russian President Vladimir Putin in Alaska, which addressed the Ukrainian crisis and its impact on global crude prices.

During the summit, Trump confirmed that the primary goal is to reach a "comprehensive peace agreement" in Ukraine, not just a ceasefire, noting his agreement with Putin on the need to direct negotiators towards a direct peaceful settlement. Trump also announced the postponement of tariffs on countries like China and India that purchase Russian oil, after previously threatening secondary sanctions against them if steps were not taken to end the war.

Ajay Parmar, an analyst at "IHS", commented on the decision, saying: "This means that Russian oil will continue to flow without any hindrance, and this is expected to have a negative impact on oil prices." He added: "It is worth noting that we believe the impact of this will be minimal, and prices are likely to see only a slight decline in the short term as a result of this news."

Oil prices had declined at the close of trading on Friday, August 15, recording weekly losses amid fears of the geopolitical tensions' impact on supplies. Brent crude settled at $65.85 per barrel, while West Texas Intermediate crude reached $62.80, a decrease of nearly a dollar compared to pre-Alaska summit levels.

Market participants are monitoring developments from the meeting scheduled for Monday between Trump and Ukrainian President Volodymyr Zelensky, which is expected to be attended by European leaders, according to a source familiar with the matter reported by "Reuters".

For his part, Giovanni Stonovo, an analyst at "UBS", said: "Market participants will follow the statements of European leaders, but for now, the risks of Russian supply disruptions will remain contained."

Phil Flynn, senior analyst at "Price Futures", explained that the market is waiting for clear signs of an agreement, noting that "the threat of immediate sanctions on Russia, or secondary sanctions on other countries, has been suspended for now, which will have a negative impact."

In light of these developments, experts expect oil prices to remain trapped within a narrow trading range until clearer indicators emerge regarding the trends of the conflict in Ukraine and the positions of the international parties on it.