Oil prices slipped on Friday but remained on track for weekly gains, as markets weighed slowing U.S. demand with ongoing risks around Russian supply. The United States, the world’s largest oil consumer, is entering the post-summer period when fuel use typically declines.
Brent crude futures for October delivery, set to expire Friday, dropped 39 cents, or 0.6%, to $68.23 by 0641 GMT. The more active November contract fell 38 cents, also 0.6%, to $67.60. West Texas Intermediate (WTI) crude futures declined 39 cents, or 0.6%, to $64.21.
Despite the pullback, Brent is heading for a 0.6% weekly gain, while WTI is on pace for a 0.8% increase.
Earlier in the week, prices climbed after Ukrainian strikes on Russian oil export terminals and comments from German Chancellor Friedrich Merz ruling out a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy.
Still, seasonal demand weakness in the U.S. and rising OPEC+ supply have weighed on sentiment. The end of voluntary output cuts is expected to boost availability. Analysts at Commonwealth Bank of Australia forecast Brent prices could fall to $63 a barrel in the fourth quarter of 2025 due to rising stockpiles.
Geopolitical risks remain in focus. A Russian missile strike on Kyiv killed 23 people on Thursday, fueling speculation that the U.S. and Europe could tighten sanctions. Investors are also watching trade tensions after President Donald Trump doubled tariffs on Indian imports to as high as 50%. Washington has pressed India to reduce Russian oil purchases, but traders expect imports to rise in September.
Meanwhile, Saudi Arabia, the world’s largest oil exporter, may lower October crude prices for Asian buyers due to abundant supply and weaker demand. Russian oil shipments to Hungary and Slovakia through the Druzhba pipeline resumed after last week’s outage caused by a Ukrainian attack in Russia, officials confirmed.
