Oil prices fell early on Friday ahead of a summit meeting between the United States and Russia, while China released weak economic data.
West Texas Intermediate crude oil for September delivery was last seen down US$0.48 to US$63.48 per barrel, while October Brent oil was down US$0.39 to US$66.45.
The drop comes as U.S. President Donald Trump and Russian President Vladimir Putin ready to meet on Friday in Anchorage, Alaska, to discuss a potential ceasefire in Russia's war on Ukraine. A deal could see the United States easing sanctions on Russia's oil exports, adding more barrels to an already over-supplied global market, though a failure to advance plans to end the war could prompt safe-haven buying.
"Given today's pivotal summit between Donald Trump and Vladimir Putin, which is expected to shed some light on Ukraine's future and will begin at 1900 GMT/1500 EDT, further short-covering would not come as an utter shock. The mind games have begun, mandatory optimism is being disseminated from both sides, but a mutually acceptable outcome is as dubious as Israel recognising an independent Palestinian state by the end of next week," PVM Oil Associates noted.
The talks come as the market remains over supplied, as OPEC+ readies to add a second tranche of 548,000 barrels per day of production on Sept. 1, the last monthly hike in its return of 2.2-million barrels per day of production cuts.
OPEC's higher output comes as the global economy slows amid U.S. tariff wars, with China, the No.1 importer, on Friday reporting lower than expected industrial production, retail sales and investment in July. The New York Times reported Chinese officials blamed the slowdown on U.S. trade protectionism and extreme weather ,though the country's government has moved to slow over-production from factories as exports falter.
"China's economy slowed across the board in July suggesting an impact from Beijing's crackdown to curb overcapacity in businesses from steel to solar and EVs, extreme weather, and spillovers from Donald Trump's tariffs," Saxo Bank noted.
Source: MT Newswires
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