Oil prices eased during Asian deals on Friday, retreating from one-week highs as traders shifted focus to geopolitical developments ahead of United States President Donald Trump’s upcoming meeting with Russian President Vladimir Putin in Alaska.
By 2:50 pm AEST (4:50 am GMT), Brent crude futures were down 9 cents, or 0.1%, at US$66.75 a barrel, while U.S. West Texas Intermediate (WTI) crude futures slipped 13 cents, or 0.1%, to $63.83.
The high-profile summit, set for later on Friday, will focus on a potential ceasefire in the Ukraine war - a conflict that has supported oil prices by curbing the supply of Russian crude to global markets.
Trump said he believes Russia is prepared to end the war, raising speculation about potential supply shifts.
In Asia, fresh Japanese government data showed the economy expanded at an annualised rate of 1.0% in the April-June quarter, outperforming the expectations of a 0.4% gain.
On a quarterly basis, gross domestic product (GDP) rose 0.3%, compared with expectations for a 0.1% increase. Stronger economic activity typically boosts oil demand.
However, gains in the oil market were capped by concerns over higher-for-longer U.S. interest rates. Recent U.S. data revealed stronger-than-expected inflation and weaker jobs growth, prompting fears that the Federal Reserve will maintain elevated borrowing costs, which could dampen fuel consumption.
