Oil prices just hit their lowest point since 2021
Photo: Oil prices fall for the seventh day in a row (Getty Images)
Oil experienced its longest decline since 2021. Traders believe that US efforts to end the war against Ukraine will not affect overall supplies, even though Washington has punished India for buying Russian oil, reports Bloomberg.
The price of Brent crude oil fell to $66 per barrel, declining for the seventh consecutive session, and the price of West Texas Intermediate crude oil fell below $64.
www.bloomberg.com
Trump's actions
US President Donald Trump, who set an August 8 deadline for Moscow to conclude a ceasefire, said he was ready to meet with Vladimir Putin, even if he has not yet agreed to talks with Ukrainian President Volodymyr Zelenskyy.
Earlier this week, Trump doubled tariffs on all imports from India to 50% as a penalty for consuming Russian oil, prompting local state-owned refineries to cancel purchases and look for other options.
Treasury Secretary Scott Bessent said that the United States could also impose tariffs on China at some point, answering a question about imposing sanctions on countries that buy energy from Moscow.
"Positive signals from this week’s US-Russia talks — and plans for a direct Trump-Putin meeting — have eased concerns over Russian supply disruptions, causing a significant retreat in geopolitical risk premiums,” said Gao Mingyu, chief energy analyst at SDIC Essence Futures Co.
Price decline
Oil prices fell sharply in August after three months of growth. Investors are preparing for a potential oversupply later this year after OPEC+ continued its campaign to ease production restrictions.
Oil futures fell amid signs of a slowdown in the world's largest economy as Trump's broader trade tariffs negatively impacted business activity, posing a risk to energy demand.
Impact on Ukraine
Global oil prices are the main factor that affects the price of gasoline and diesel fuel in Ukraine. In June, gasoline and diesel prices in Ukraine increased sharply due to the spike in oil prices in connection with the war against Iran.
Retail prices for gasoline and diesel in Ukraine remained almost unchanged in July 2025.
