Oil prices continue to decline, showing the most significant drop since the end of June. By the end of the current week, the price quotes for Brent and WTI crude oil have come under pressure due to the introduction of new American tariffs and OPEC+ decisions, which have affected investor sentiment.
This is reported by Finway
Dynamics of Global Oil Quotes
Brent crude oil futures fell by three cents on Friday, trading at $66.40 per barrel. It is expected that by the end of the week, Brent will lose over 4% of its value. The American West Texas Intermediate (WTI) also dropped in price—by six cents, or 0.1%, to $63.82 per barrel, and is likely to show a decline of over 5% for the week.
Reasons for the Decline and Geopolitical Impact
The primary factor behind the price drop was the increased US tariffs on a number of trading partners that came into effect on Thursday. According to analysts at ANZ Bank, these trade measures have heightened concerns about a potential slowdown in global economic activity, which, in turn, could affect demand for crude oil.
Additionally, the market faced further pressure from OPEC+’s decision to completely cancel the largest tranche of oil production cuts planned for September. Following the announcement of this decision, oil prices began to decline rapidly.
“At the close of trading on Thursday, WTI futures had fallen for six consecutive sessions, marking a series of declines last seen in December 2023. If prices settle lower on Friday, it will be the longest streak since August 2021.”
Additional US tariffs on India, imposed due to the purchase of Russian crude oil, partially limited the extent of the price drop. Meanwhile, analysts at StoneX emphasize that this measure is unlikely to significantly reduce the volumes of Russian oil exports to international markets.
US President Donald Trump stated on Wednesday that China—the main buyer of Russian oil—may also face similar tariffs as India if it continues to purchase Russian raw materials.