Oil Rebounds From Two-Month Low as Trump-Putin Summit Looms

Oil prices crept higher in Asian trading on Thursday, clawing back losses from a day earlier as investors positioned for Friday’s summit in Alaska between U.S. President Donald Trump and Russian President Vladimir Putin. Traders see the encounter as a potential trigger for new sanctions on Russian crude, lifting the geopolitical risk premium after Trump warned of “severe consequences” if Moscow fails to advance peace efforts in Ukraine. Brent crude for October settlement rose 28 cents, or 0.43%, to $65.91 a barrel at 00:57 GMT, while West Texas Intermediate added 23 cents, or 0.37%, to $62.89. Both benchmarks had fallen below $63 on Wednesday, touching two-month lows after U.S. Energy Information Administration data showed domestic crude inventories increased by 3 million barrels, defying expectations of a drawdown. The sell-off was compounded by an International Energy Agency forecast that global supply could swell to a record surplus in 2026 as OPEC+ and U.S. shale producers expand output. Even so, analysts at Rystad Energy said uncertainty over the U.S.–Russia talks is keeping a bullish floor under prices, given that tougher measures against Moscow could disrupt flows of Russian oil. Macro factors are also lending support. Futures markets assign a 99.9% probability that the Federal Reserve will cut rates at its Sept. 16–17 meeting, with some officials entertaining an outsized half-point move amid soft employment data. Cheaper borrowing costs would be expected to lift fuel demand, further cushioning crude from the bearish inventory and supply signals.