In a Thursday update on Truth Social, President Donald Trump announced that he and President Vladimir Putin have agreed to meet in Budapest, Hungary, following what he described as a “long and productive” phone call.
The goal of the summit is to discuss possible ways to end Russia’s war in Ukraine, which is now in its third year. Trump said the exact date hasn’t been finalized yet, but preparations are already underway.
Trump also confirmed that Secretary of State Marco Rubio and a group of high-level U.S. advisors will meet with Russian counterparts next week to prepare for the meeting.
The phone conversation between the two leaders comes just one day before Ukrainian President Volodymyr Zelenskyy is set to meet with Trump in the Oval Office, as Kyiv continues to push for more military and financial support from the United States.
“President Zelenskyy and I will be meeting tomorrow, in the Oval Office, where we will discuss my conversation with President Putin, and much more,” Trump wrote. “I believe great progress was made with today’s telephone conversation.”
Putin talks oil, Trump considers Tomahawks
Trump also said earlier this week that he’s considering sending Tomahawk missiles to Ukraine, a decision that would directly increase pressure on Russia. The possible arms deal, paired with the upcoming meeting, adds a fresh layer to Trump’s direct approach on Ukraine.
While Trump was laying out his plans, Putin was speaking at an energy conference in Moscow, where he said Russia remains a major global oil producer, despite what he called “unfair” trade restrictions. “Russia maintains its position as one of the leading oil producers, despite the use of unfair competition mechanisms against us,” Putin said. He added that the country currently makes up 10% of global production and expects to hit 510 million tonnes of oil output by year-end.
Putin also slammed European countries for cutting off Russian gas supplies, saying they’ve damaged their own economies in the process. He did not mention the U.S. efforts to pressure China and India to stop buying Russian energy.
But Trump did. He claimed that Indian Prime Minister Narendra Modi told him on Wednesday that India would stop buying oil from Russia. That’s a major shift, considering Russia supplies one-third of India’s total crude imports. “This is a positive development for the crude oil price as it would remove a big buyer of Russian oil,” said Tony Sycamore, a market analyst at IG.
Oil prices drop after Trump-Putin call and crude data shock
After Trump confirmed the Budapest summit plan, oil prices slid. Brent crude fell by 1.37% to close at $61.06 a barrel, and West Texas Intermediate dropped 1.39% to $57.46, both at their lowest levels since May 5. Traders saw Trump’s announcement as a signal of possible de-escalation, which could shift global demand and supply expectations.
But it wasn’t just geopolitics rattling the markets. The Energy Information Administration reported that U.S. crude inventories jumped by 3.5 million barrels last week, hitting 423.8 million barrels, far higher than the 288,000-barrel rise expected.
The larger-than-expected build was due to reduced refinery activity during fall maintenance. “A modestly bearish report, with a large crude build being offset by a large distillate draw, but with implied oil demand considerably weaker than last week,” said Giovanni Staunovo, an analyst at UBS.
Adding to the mix, U.S. production rose to 13.636 million barrels per day, the highest level ever recorded. Meanwhile, multiple Indian refiners are preparing to reduce Russian oil imports, though India’s government made no official comment on Trump’s claim.
Instead, it said the country’s top energy goals are stable prices and secure supply. Russia’s government replied that it’s confident in its ongoing energy ties with India, despite pressure from Washington.
To wrap the day up, the United Kingdom rolled out new sanctions targeting Rosneft and Lukoil, two of Russia’s largest energy firms, tightening restrictions on their financial and operational activities.
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