Oil slipped as seasonal demand ebbed; market focus turned to US–Russia talks

Crude oil prices retreated on Tuesday, 12 August 2025, as traders weighed signs of weakening US summer fuel demand against geopolitical developments ahead of a high-level meeting between Washington and Moscow.

Brent futures slipped 51 cents, or 0.77%, to $66.12 a barrel.

WTI fell 79 cents, or 1.24%, to $63.17.

Market participants shifted attention to the US Energy Information Administration’s upcoming inventory report, with early indications pointing to softer demand as the summer driving season winds down in early September. Rising consumer costs—amplified by higher import prices following tariff adjustments—are adding further pressure to fuel consumption.

Price movements have narrowed in recent sessions as investors await the 15 August US–Russia summit in Alaska. While both sides have downplayed the likelihood of a breakthrough on the Ukraine conflict, traders remain alert to any signal that could pave the way for easing US sanctions on OPEC+ member Russia, potentially unlocking additional barrels into the global market.

Written: Farid Muzaffar