Oil costs fell on Tuesday, August 19, 2025, over the likelihood that the assembly between the USA (US), Russia, and Ukraine may result in the easing of sanctions on Russian crude, resulting in a rise within the provide of the commodity.
In response to information from oilprice.com, Brent crude was down by 1.01% or 67 cents to commerce at $65.93 per barrel, whereas the West Texas Intermediate (WTI) was down by 1.23% or 78 cents to commerce at $62.64 per barrel on the time of scripting this report on Tuesday afternoon.
This might additional put Nigeria’s fiscal plan, particularly for 2025, in severe jeopardy, as it will worsen the finances deficit of the Federal Authorities.
The US President, Donald Trump, had, after the assembly with the Ukrainian President, Volodymyr Zelenskiy, and European allies, introduced in a social media submit that he had spoken with Russian President Vladimir Putin.
Trump mentioned preparations had been being made for a gathering between Putin and Zelenskiy, which may result in a trilateral summit involving all three leaders.
The US President urged Putin and Zelenskiy to point out some “flexibility” as he accelerates his efforts to finish the struggle in Ukraine and encourages the 2 leaders to carry a bilateral summit.
In response to Reuters, Commerzbank analysts are predicting that with Monday’s assembly between Trump, Zelensky, and a number of other European leaders, an finish to the struggle might be a chance.
“Following yesterday’s assembly between Trump, Ukrainian President Zelenskiy, and a number of other European heads of state and authorities, there seems to be motion within the negotiations, fueling renewed hopes for an upcoming finish to the struggle. Because of this, oil costs are falling once more as we speak,” Commerzbank analysts mentioned in a observe.
Suvro Sarkar, lead power analyst at DBS {Bank}, mentioned Trump’s softened stance on secondary sanctions focusing on importers of Russian oil had lowered the danger of worldwide provide disruptions, easing geopolitical tensions barely.
There have been experiences that China has boosted imports of Russia’s flagship Urals crude, as refiners purchase further volumes of discounted oil, whereas India is hesitant amid U.S. threats over its purchases of Russian oil.
China is the highest purchaser of Russian crude, however most of its imports encompass the ESPO grade shipped from Russia’s port of Kozmino within the Far East.
Urals, then again, is being shipped from the ports in western Russia to India, and China hasn’t imported a lot of the grade because of larger transport prices and longer voyages.
Nonetheless, with the hiked U.S. tariffs on India over its imports of Russian crude, commerce flows have began to shift, and China and Russia are profitable within the new Urals commerce, on the expense of India.
Zelenskiy described his talks with Trump as “superb” and famous discussions about potential U.S. safety ensures for Ukraine. Trump confirmed the U.S. would supply such ensures, although the extent of assist stays unclear.
Nairametrics had earlier reported that Nigeria’s fiscal stability faces renewed stress as world oil costs fall and crude manufacturing continues to path official targets, heightening the danger of a wider finances deficit and better borrowing wants.
Brent crude has been sliding in current weeks, buying and selling beneath the Federal Authorities’s 2025 finances benchmark of $75 per barrel. The decline is pushed by weaker world demand expectations and geopolitical tensions which have clouded the power market outlook.
On the home entrance, crude oil output has improved to a median of about 1.5 million barrels per day (bpd) this yr.
Though this represents an enchancment over final yr’s determine, it nonetheless falls in need of the 2025 finances goal of 1.78 million bpd goal within the finances.
