Oil prices fell in early Asian trading today, continuing losses that exceeded four percent last week due to increased US tariffs on its trading partners, increased OPEC production, and expectations of a ceasefire agreement approaching between the United States and Russia in Ukraine.

Brent crude futures dropped 52 cents, or 0.78 percent, to $66.07 a barrel by 0041 GMT, while US West Texas Intermediate crude futures fell 58 cents to $63.30.

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

This comes as the US escalates pressure on Russia, increasing the likelihood of tougher sanctions on Moscow if no peace agreement is reached.

Trump set a deadline last Friday for Russia to agree to peace in Ukraine or face secondary sanctions on countries buying its oil, while also pressuring India to reduce its purchases of Russian oil.

Alongside US-Russia talks, Tony Sycamore, market analyst at IG, said in a note that US inflation data due Tuesday would be another key driver for prices this week.

He added, “A decline in the consumer price index reading is expected to boost expectations of an early and deep interest rate cut by the Federal Reserve, which could stimulate economic activity and increase crude demand.”

“Conversely, a rise in the reading is expected to raise fears of stagflation and undermine rate cut expectations.”

Under the influence of gloomy economic forecasts, Brent fell 4.4 percent during the week ending Friday, while West Texas Intermediate crude dropped 5.1 percent.