Crude oil futures traded lower on Monday morning as markets grew optimistic that a proposed meeting between the US and Russian presidents could lead to a peace deal in Russia-Ukraine conflict.
At 9.55 am on Monday, October Brent oil futures were at $66.27, down by 0.48 per cent, and September crude oil futures on WTI (West Texas Intermediate) were at $63.50, down by 0.59 per cent. August crude oil futures were trading at ₹5569 on Multi Commodity Exchange (MCX) during the initial hour of trading on Monday against the previous close of ₹5610, down by 0.73 per cent, and September futures were trading at ₹5511 against the previous close of ₹5549, down by 0.68 per cent.
On Friday, US President Donald Trump said that he would meet the Russian President Vladmir Putin in Alaska on August 15 to discuss Ukraine issue. This announcement comes amid Trump’s moves to impose higher tariffs on buyers of Russian oil.
In their Commodities Feed for Monday, Warren Patterson, Head of Commodities Strategy of ING Think, and Ewa Manthey, Commodities Strategist, said Trump’s deadline for Russia to strike a peace deal with Ukraine passed without stricter US sanctions imposed on Russia.
“This likely contributed to the recent weakness in crude oil prices, with Brent trading at its lowest levels since early June,” they said, adding, the market is focused on Trump’s meeting with Putin on Friday — and whether any progress towards a peace deal can be made.
But with Russia demanding that Ukraine cede occupied territory to end the war, it’s difficult to see a quick solution. It’s unlikely that Ukraine will agree to give up its own territory.
“If we do see some level of de-escalation, it would remove sanction risk from the oil market. This would likely drive prices lower, given the bearish fundamentals,” they said.
Markets are also awaiting the release of the US CPI (consumer price index) inflation data for July. Market reports said that any signs of cooling inflation could boost bets for the US Federal Reserve to cut interest rates in September. A reduction in interest rates could help boost demand for commodities such as crude oil. US is one of the major consumers of crude oil in the world market.
August natural gas futures were trading at ₹255.80 on MCX during the initial hour of trading on Monday against the previous close of ₹260.80, down by 1.92 per cent.
On the National Commodities and Derivatives Exchange (NCDEX), August guarseed contracts were trading at ₹5,192 in the initial hour of trading on Monday against the previous close of ₹5,183, up by 0.17 per cent.
August cottonseed oilcake futures were trading at ₹3,272 on NCDEX in the initial hour of trading on Monday against the previous close of ₹3,276, down by 0.12 per cent.
Published on August 11, 2025
