Oil prices slipped on Tuesday, August 19, 2025, as investors weighed early signs of potential peace talks between Russia and Ukraine. Hopes of de-escalation prompted a modest retreat after crude rallied in the previous session on geopolitical uncertainty.
Brent and WTI dip
Brent crude fell 0.11 percent to $66.53 per barrel, while U.S. West Texas Intermediate (WTI) for September delivery declined 0.09 percent to $63.36. October WTI dropped 0.14 percent to $62.61. Traders attributed the retreat to optimism that diplomacy could ease sanctions on Russian oil exports, lowering geopolitical risk premiums.
Peace talks influence sentiment
U.S. President Donald Trump, following meetings with Ukrainian President Volodymyr Zelenskiy and European leaders, indicated he is arranging a direct summit with Russian President Vladimir Putin. Zelenskiy described his discussions with Trump as “very good,” noting progress on security guarantees for Ukraine. Analysts said the developments tempered short-term market fears but warned that any failed talks could quickly reverse sentiment.
Market outlook
Commodity strategists caution that oil remains vulnerable to renewed sanctions or renewed conflict escalation. Bart Melek, head of commodity strategy at TD Securities, said a breakthrough in negotiations could see prices soften to around $58 per barrel, while setbacks could send crude sharply higher. Traders remain cautious, balancing hopes for diplomatic progress with the risk of persistent supply disruptions from the conflict.
Supply and demand factors
Beyond geopolitics, market participants are also monitoring U.S. production levels, OPEC+ output decisions, and inventory reports. The interplay of supply considerations with diplomatic developments continues to drive volatility and shape near-term oil price trends.
REFH – Newshub, 19 August 2025
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