Oil prices are heading for a weekly gain after falling on demand concerns
US fuel demand is expected to ease after Labor Day. Oil prices fell on Friday but are poised for a weekly rise amid expectations of lower demand in the US, the world's largest consumer, as summer approaches and uncertainty about supplies from Russia.
Brent crude futures for October delivery, due Friday, were trading down 39 cents, or 0.6%, at $68.23 at 06:41 GMT, while the more active November contract was down 38 cents, or 0.6%, at $67.60. WTI crude futures were trading down 39 cents, or 0.6%, at $64.21.
Brent is expected to gain 0.6% for the week, while WTI is expected to gain 0.8%.
Prices rose following Ukraine's attacks on Russian oil export terminals earlier this week and the announcement that there would be no talks between Putin and Zelenskyy.
However, the start of the Labor Day holiday on Monday, coupled with increased summer demand in the US and the end of voluntary production cuts, coupled with increased supply from major producers, has negatively impacted prices.
Global oil inventories are expected to rise in the coming months due to the increase in OPEC+ supply and the seasonal decline in global refining activity starting in September. Brent crude futures are likely to fall to $63 a barrel in the fourth quarter of 2025.
Russia's attacks on the Ukrainian capital Kyiv early Thursday, which killed 23 people, have raised concerns that the US may respond with tougher sanctions.
Uncertainty over whether the US and Europe will tighten sanctions against Russia following its attack on Ukraine and the potential impact of US tariffs on India are keeping investors from taking large positions.
Investors are also closely watching how India responds to US pressure to halt its purchases of Russian oil after Trump doubled tariffs on Indian imports to 50% on Wednesday.
Nevertheless, Russian oil exports to India are expected to increase in September.
Saudi Arabia, the world's largest oil exporter, may lower crude prices for Asian buyers in October due to ample supplies and weak demand.
Shipping of Russian crude to Hungary and Slovakia via the Druzhba pipeline has resumed, following a disruption following Ukraine's attack on Russia last week, Hungarian oil company MOL and the Slovak Economy Minister said on Thursday.
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