Oil Prices Drop at Weekend!
Oil prices are headed for their biggest weekly decline since June, as traders are confident that US efforts to end the war in Ukraine will not impact oil supplies. Brent for October delivery was steady at $66.42 per barrel at 11:58 a.m. in Singapore.
WTI for September delivery was little changed at $63.84 per barrel. Although Washington imposed sanctions on India for importing Russian oil, their impact on global supply is considered limited.
Earlier this week, President Trump doubled tariffs on Indian imports to 50% as a penalty for purchases of Russian oil, prompting India's state-owned oil company to refrain from purchases and seek alternative sources. Additionally, US Treasury Secretary Scott Bessent stated that tariffs could also be imposed on China, which buys energy from Russia.
After three months of gains, oil prices fell in August. Investors are wary of a potential oversupply later this year after OPEC+ eased production curbs. Signals of a US economic slowdown due to Trump's tariff policies are also hurting energy demand.
Energy analyst Gao Mingyu said the positive US-Russia negotiations and the planned face-to-face meeting between Trump and Putin have eased concerns about Russian supply disruptions, lowering the geopolitical risk premium. This has caused the market to shift to bearish sentiment, amid weakening supply and demand fundamentals. (ayu)
Source: Newsmaker.id
