Oil slipped as investors weighed US President Donald Trump’s deferral of lofty tariffs on China against possible outcomes from his planned meeting with Russia’s Vladimir Putin.

West Texas Intermediate dropped near $63 a barrel in muted summer trading, near last week’s two-month low. Trump extended for another 90 days a truce that was set to expire Tuesday. US inflation data, meanwhile, bolstered speculation the Federal Reserve will soon be able to cut interest rates.

Absent any major drivers, traders are looking to the summit between Trump and Putin later this week for signs sanctions on the major oil producer will be eased, although the US president on Monday downplayed expectations for a deal to end the war in Ukraine.

The aggregate trading volume of global benchmark Brent is well below its daily average — suggesting traders are exercising caution as they seek further insight into the oil market’s outlook. Prices are down by more than 8% this month after trade and geopolitical tensions eased, while many analysts anticipate a supply glut later this year.

Meanwhile, the US government now expects domestic oil production to fall next year, reversing years of output growth. The EIA also estimated the supply glut would increase to 1.7 million barrels a day in 2026. Looking ahead, the International Energy Agency will release its report on Wednesday.

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