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Oil prices fell to five-month lows on Thursday as news of a planned Trump-Putin summit and a larger-than-expected rise in US crude inventories deepened bearish sentiment.

Brent crude settled 85 cents lower, or 1.37%, at $61.06 a barrel.

WTI dropped 81 cents, or 1.39%, to $57.46 — the weakest closes since 5 May.

Prices weakened after Washington and Moscow confirmed plans to meet in Budapest to discuss ending the war in Ukraine, injecting fresh uncertainty into the global supply outlook.

Additional pressure came from US government data showing crude stocks rising by 3.5 million barrels to 423.8 million last week, far exceeding expectations for a modest increase. The build, largely linked to lower refinery runs during seasonal maintenance, overshadowed a distillate draw while implied demand remained soft. US production also climbed to a record 13.64 million barrels per day.

Reports suggesting India may reduce purchases of Russian oil added to volatility, though authorities later reaffirmed that maintaining stable prices and reliable supply remains their priority. Moscow expressed confidence in the continuity of its energy partnership with New Delhi. Meanwhile, the UK imposed new sanctions on Rosneft and Lukoil, expanding restrictions on Russia’s energy sector.

Crude benchmarks remain under pressure from robust supply, muted demand, and renewed geopolitical uncertainty, keeping sentiment subdued ahead of 2026.

Written: Aiman Haikal