Global crude prices declined on Friday as concerns over weaker U.S. demand combined with speculation about potential negotiations aimed at halting the conflict in Ukraine.
Brent crude for October settlement, which expires Friday, dropped by 48 cents (0.7%) to $68.14 per barrel at 10:18 a.m.
The more active November contract slipped 52 cents (0.76%) to $67.46. U.S. benchmark West Texas Intermediate (WTI) also retreated, down 56 cents (0.87%) to $64.04.
Market sentiment was shifting toward the upcoming OPEC+ meeting, according to Tamas Varga of PVM Oil Associates. The producer group has been ramping up supply to recover lost market share, creating pressure on prices globally.
However, U.S. inventories remain tight, with domestic demand expected to ease after the Labour Day holiday—the traditional end of the summer driving season—according to Reuters.
Phil Flynn of Price Futures Group said, “The pessimism about demand, I’m just not seeing it. Supply from OPEC is supposed to increase, but we’re not seeing it in the U.S. I think things are going to stay tight.”
Earlier price gains sparked by Ukrainian strikes on Russian export facilities were tempered by reports of behind-the-scenes discussions among European allies regarding a possible truce.
Weekly U.S. stockpile data showed stronger-than-expected withdrawals, particularly in industries tied to freight and manufacturing, according to Ole Hvalbye of SEB Bank.
Meanwhile, Commonwealth Bank of Australia analyst Vivek Dhar projected Brent prices could slide to $63 a barrel by the last quarter of 2025.
Investors are also tracking India’s response to Washington’s demand to halt Russian oil imports. This follows former President Donald Trump’s decision to double tariffs on Indian imports to as high as 50%. Despite U.S. pressure, traders expect India’s purchases of discounted Russian crude to rise in September.
Varga of PVM added, “The prevalent view is that Russian sanctions are not forthcoming, and India will ignore U.S. sanction threats and continue buying Russian crude oil at heavily discounted prices.”
