Oil prices edged lower in Asian trade on Friday but remained on course for their steepest weekly losses since late June, as fresh tariffs and geopolitical uncertainty clouded the outlook for global demand.
By 2:55 pm AEST (4:55 am GMT), Brent crude futures slipped 6 cents to $66.38 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined 10 cents, or 0.1%, to $63.82 a barrel.
For the week, Brent was tracking a 4.7% loss and WTI a 5.3% drop.
ANZ analysts said, “Trump’s tariffs officially kicked in this week, raising concerns of weaker economic activity and thus demand for crude oil.”
The latest slide follows the Organisation of Petroleum Exporting Countries (OPEC+) group’s decision last weekend to fully unwind its largest tranche of output cuts in September, several months ahead of schedule, adding further supply pressure to the market.
Geopolitical developments also weighed on sentiment. The Kremlin confirmed on Thursday that Russian President Vladimir Putin would meet U.S. President Donald Trump in the coming days, sparking speculation of a possible diplomatic breakthrough in the war in Ukraine.
“The market is also on edge amid a proposed meeting between presidents Trump and Putin. Trump has been pushing for a ceasefire with Ukraine, which has included threats of secondary tariffs on buyers of Russian oil,” ANZ noted.
In a separate move, Trump on Wednesday warned that China - the largest buyer of Russian crude - could face tariffs similar to those being applied to Indian imports, further fuelling concerns over future trade flows.
The combination of trade tensions, potential supply shifts, and geopolitical uncertainty has placed heavy pressure on oil markets, with traders bracing for further volatility in the weeks ahead.
