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NEW DELHI: Oil prices fell in Asian trade on Monday, extending declines of more than 4 percent last week as investors awaited the outcome of talks between the US and Russia later this week on the war in Ukraine.

Brent crude futures fell 62 cents, or 0.93 percent, to $65.97 a barrel by 8:31 a.m. Saudi time, while US West Texas Intermediate crude futures were down 69 cents, or 1.08 percent, to $63.19.

Expectations have risen for a potential end to sanctions that have limited the supply of Russian oil to international markets, after US President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on Aug. 15 in Alaska to negotiate an end to the war in Ukraine.

The talks follow increased US pressure on Russia, raising the prospect that penalties on Moscow could also be tightened if a peace deal is not reached.

“If peace talks falter and the conflict drags on, the market could quickly pivot to a bullish stance, potentially triggering a sharp rally in oil prices,” said Sugandha Sachdeva, founder of SS WealthStreet, a New Delhi-based research firm.

Trump set a deadline of last Friday for Russia, which invaded Ukraine in February 2022, to agree to peace or have its oil buyers face secondary sanctions. At the same time, Washington is pressing India to reduce purchases of Russian oil.

Consultancy Energy Aspects estimated Indian refiners have already purchased WTI totalling 5 million barrels for August loadings, with an incremental 5 million barrels possible depending on tender outcomes, and 5 million barrels for September loadings.

WTI arbitrage to Asia remains open, and India looks set to continue absorbing US crude for now, Energy Aspects said in a weekly note.

Trump’s higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to weigh on economic activity as they force changes to supply chains and fuel higher inflation.

Dragged down by the gloomy economic outlook, Brent fell 4.4 percent over the week ended Friday, while WTI dropped 5.1 percent.

“The near-term direction will hinge on several key events, including the August 15 meeting between the US and Russian presidents, upcoming speeches from Federal Reserve officials, and the release of the US CPI data,” said Sachdeva.

Separately, data from the National Bureau of Statistics on Saturday showed China’s producer prices fell more than expected in July, while consumer prices remained flat, highlighting the extent to which weak domestic demand and ongoing trade uncertainty are weighing on consumer and business sentiment. 

RIYADH: Egypt’s annual urban inflation rate eased to 13.9 percent in July, down from 14.9 percent the previous month, as falling food costs helped temper price pressures, official data showed.

Figures from the Central Agency for Public Mobilization and Statistics revealed that the monthly inflation rate declined by 0.6 percent, with the general consumer price index standing at 256.5 points.

The moderation was largely driven by significant drops in key food categories. Fruit prices plunged 11 percent, vegetables fell 7 percent, and meat and poultry were down 4.9 percent. Personal belongings also recorded a marginal decline of 0.5 percent.

However, price increases persisted in some segments. Grains and bread rose 0.4 percent, while dairy products, eggs and cheese each edged up 0.2 percent. Fish and seafood prices also gained 0.2 percent, as did beverages, coffee, tea and cocoa, while mineral water, soft drinks and natural juices climbed 0.8 percent.

Outside the food sector, inflation trends were mixed. Tobacco products saw the steepest rise at 7.8 percent. Clothing and footwear gained 0.3 percent, supported by a 0.4 percent increase in ready-made garments and a 0.2 percent rise in footwear.

Housing costs advanced 0.7 percent, driven by a 0.8 percent increase in actual rents and a 1.7 percent rise in home maintenance expenses. 

Furnishings, household equipment and routine maintenance were up 0.7 percent, home textiles rose 2.6 percent, glassware and tableware 0.6 percent, and gardening and household tools 1.2 percent.

Healthcare prices climbed 0.3 percent, reflecting a 0.6 percent increase in outpatient services and a 1.1 percent jump in hospital fees. 

Transportation costs edged higher by 0.1 percent, boosted by a 0.2 percent increase in vehicle purchases and a 0.3 percent rise in private transport expenses.

Communication services rose 0.6 percent, while recreation and culture gained 0.3 percent, supported by higher spending on cultural and entertainment activities and organized tourist trips.

Hotels and restaurants recorded a 0.6 percent increase, with ready meals up 0.5 percent and hotel services up 1.5 percent. Miscellaneous goods and services grew 0.7 percent, led by a 1.2 percent rise in personal care items.