Oil prices initially reacted yesterday with modest losses to the meeting between US President Trump and Russian President Putin last Friday, Commerzbank's commodity analyst Carsten Fritsch notes.

Oil prices are falling again today

"The meeting did not produce any tangible results for a ceasefire or an end to the war in Ukraine in the near future. Trump had threatened severe consequences prior to the meeting in this case. However, these have not materialized so far. On Friday, Trump announced that punitive tariffs against China for its purchases of Russian oil were not planned at present."

"Following yesterday's meeting between Trump, Ukrainian President Zelensky, and several European heads of state and government, there appears to be movement in the negotiations, fueling renewed hopes for an upcoming end to the war. As a result, oil prices are falling again today."