Oil prices extended their steepest weekly decline since late June as markets reacted to news that US President Donald Trump will meet Russian President Vladimir Putin in Alaska on Friday, fueling speculation of a breakthrough in the Ukraine war and a possible surge in global oil supply.
Brent crude hovered near $66 a barrel on Monday after falling 4.4% last week, while West Texas Intermediate (WTI) dipped below $64. Trump, who had previously set an August 8 deadline for the Kremlin to agree to a ceasefire, did not announce new sanctions on Russia or tariffs on its energy exports when unveiling the summit plans.
Crude has already shed more than 10% this year, pressured by OPEC+ ramping up production faster than initially scheduled, reversing the output cuts made in 2023. Slowing global economic growth is also dampening demand.
Analysts say a peace agreement could trigger the lifting of sanctions on Russian oil exports, unlocking significant additional supply. That could deepen the oversupply forecast for later this year, putting further downward pressure on global crude prices.
Possible Impact on Fuel Prices
If the diplomatic breakthrough materialises and oil prices continue to fall, Ghanaian consumers could see a reduction in fuel prices at the pumps in the coming weeks. Lower crude costs typically feed through to domestic pump prices, provided the cedi remains stable against the US dollar and local taxes remain unchanged. However, experts caution that any benefits could be offset if the exchange rate weakens or if global freight and refining costs rise.
For now, the market’s focus remains on Friday’s high-stakes talks in Alaska, a meeting traders believe could mark a turning point not just for geopolitics, but for motorists worldwide hoping for some relief on fuel costs.
