Oil futures turned negative after rising as high as 1.09% on Friday following a Bloomberg report that the U.S. is in the process of brokering a deal between Russia and Ukraine. The deal would confirm Russia’s territorial gains in Ukraine, while Russia would also agree to halt its offensive attacks in the Kherson and Zaporizhzhia regions of Ukraine, according to people familiar with the matter.
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Earlier today, Fox News reported that officials from the U.S. and Russia are “tentatively” planning a meeting between President Trump and Russian President Vladimir Putin for next week.
Russia’s Relationship with Oil Prices
Trump had previously threatened to place a 100% secondary tariff on Russia unless it reached a ceasefire with Ukraine by today, August 8. It’s unclear if Trump will follow through with the tariff in light of the recent developments. If imposed, the tariffs would target Russia’s oil exports, potentially disrupting supply chains and driving up prices. Russia accounts for about 10% of global oil production, serving key customers like India and China.
Earlier this week, Trump raised India’s tariff rate to 50% from 25%, citing the country’s purchases of Russian oil that indirectly support Russia’s war efforts. Trump has not yet imposed a similar penalty on China as the two countries continue trade negotiations.
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