Oil notched its first month-to-month loss since April, with buying and selling dominated by considerations a few looming glut and geopolitical points, together with US-led efforts to finish the struggle in Ukraine.
West Texas Intermediate for October supply slid 0.9% to settle close to $64 a barrel, with the US benchmark down 7.6% this month. Brent closed above $68. Oil has misplaced floor in August on worries that world provides will run forward of demand within the coming quarters, boosting stockpiles.
The commodity’s droop deepened on Friday after US shopper sentiment declined to a three-month low, reflecting considerations that tariffs will damage the economic system.
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Traders are additionally centered on Ukraine and potential shifts in crude flows from Russia. US President Donald Trump was “not completely happy” about Moscow’s latest strikes on Ukraine, White Home Press Secretary Karoline Leavitt mentioned. Washington has imposed a 50% levy on most Indian imports to punish the South Asian nation for purchasing Russian crude.
Moscow unleashed a wave of drone and missile strikes on Kyiv earlier this week, in defiance of US requires an finish to the preventing, killing 18 individuals, Ukrainian authorities mentioned.
A gathering between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin was unlikely, in accordance with German Chancellor Friedrich Merz. Trump has threatened “very huge penalties” if Moscow does not come to the negotiating desk.
Oil is down 11% this 12 months on considerations that Trump’s commerce struggle will damage power consumption on the identical time that OPEC+ is working to revive idled capability.
“Extra OPEC+ oil is coming to the market amid worries over US financial development, which retains the market well-supplied,” mentioned Jens Naervig Pedersen, a strategist at Danske Financial institution AS.
Buying and selling volumes on Friday had been muted forward of the Labor Day vacation weekend within the US, contributing to exaggerated worth swings.
Oil Costs
- WTI for October supply slipped 0.9% to settle at $64.01 a barrel in New York.
- Brent for November settlement slipped 0.7% to settle at $67.48 a barrel.
- The October contract, which expires Friday, shed 0.7% to settle at $68.12.
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