Oil prices fell after their biggest weekly drop since late June before a meeting between U.S. and Russian leaders on Friday, which raised the prospect of an end to the war in Ukraine and more supplies.

Brent traded near $66 a barrel, after falling 4.4% last week, while West Texas Intermediate was above $63. President Donald Trump did not reveal additional sanctions on Russia, or tariffs on its energy buyers, when he announced the summit in Alaska, despite setting an August 8 deadline for the Kremlin to agree to a ceasefire.

U.S. and Russian officials are working on a deal that would lock in Moscow's occupation of territory captured during its military invasion, according to people familiar with the matter. The U.S. is working to secure support from Ukraine and its European allies for the deal, which remains far from certain, they said.

Oil has lost more than 10% this year as OPEC+ restored production earlier than originally planned, ending curbs set to begin in 2023, even as slowing economic growth threatens to cut consumption.

A peace agreement with Ukraine could end sanctions on Russian supplies, potentially worsening the expected oversupply for later this year.

Meanwhile, Ukraine said it carried out a successful drone attack early Sunday on a key refinery in the Saratov region, the latest in a series of attacks this month on Russian oil facilities.

Investors may gain further insight into the supply-demand balance later this week, with the Organization of the Petroleum Exporting Countries releasing its monthly market analysis on Tuesday. The International Energy Agency will publish its monthly report on Wednesday. (alg)

Source: Bloomberg