Oil futures are up by 1.8% after President Trump said he believes there is a 25% chance that his meeting with Russian President Vladimir Putin on Friday will result in failure. The two leaders will meet at the Joint Base Elmendorf-Richardson in Anchorage, Alaska.
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Trump also explained that a second meeting with Putin would be “very, very important, because that’s going to be a meeting where they make a deal.” The second meeting would include Ukrainian President Volodymyr Zelenskyy and possibly other European leaders, said Trump.
Russian Sanctions Could Result in Higher Oil Prices
On Wednesday, Trump warned that Russia would face “very severe consequences” if it continues to attack Ukraine following Friday’s meeting. These consequences likely include secondary tariffs on the country, which Trump had previously threatened but failed to implement.
Russia is the world’s second-largest exporter of oil, serving customers like India and China. In the event of secondary tariffs, oil supply chains could be disrupted, driving up prices in the process.
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