Oil steadies after US‑Russia deal, closes week down 5%
U.S. and Russia Seek a Deal to End Ukraine War
The world oil markets remained flat on Friday, but Brent crude futures finished 0.2% higher at $66.59 a barrel, while U.S. West Texas Intermediate (WTI) crude held steady at $63.88.
Key Market Drivers
- U.S. tariffs on imports from several trade partners were enforced this week, intensifying concerns about economic activity and reducing demand for crude oil.
- OPEC+ scheduled a production increase of 547,000 barrels per day for September, a tactic aimed at regaining market share amid rising supply.
- U.S. oil rig counts rose by one to 411, signalling potential future supply growth.
- A stronger U.S. dollar on Friday, although heading for a weekly decline, could dampen demand for dollar‑denominated crude from foreign buyers.
Diplomatic Developments
Washington and Moscow are working toward an agreement on territories for a forthcoming summit between President Donald Trump and President Vladimir Putin as early as next week. US and Russian officials said they were aiming to lock in Russia’s occupation of territories seized during its military invasion.
U.S. Sanctions and Tariff Threats
Trump has warned that tariffs could expand against India if it continues buying Russian oil. He also hinted that China, the largest buyer of Russian crude, might face tariffs similar to those levied against Indian imports.
Market Sentiment and Outlook
Analysts at Sparta Commodities noted that headline risk remains strong, especially with uncertainty surrounding who will attend the Ukraine summit and under what circumstances. FGE NexantECA analysts said bearish sentiment returned this week as key OPEC+ members announced a second “quadruple” output unwind for September and President Trump’s sweeping import tariffs took effect against most countries.
Trump also nominated Stephen Miran to serve as the final months of a newly vacant seat at the Federal Reserve, raising expectations of a more dovish policy. Lower interest rates are expected to reduce consumer borrowing costs and could boost economic growth and oil demand.
About Arathy Somasekhar
b>Arathy Somasekhar is a seasoned reporter based in Houston, specializing in the dynamics of oil markets and the performances of energy corporations. Her daily coverage centers on the U.S. crude supply and its rippling effects on the globe, the shifting flows of crude oil, as well as the stories behind U.S. shale producers and oilfield service enterprises.
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