Written by The Banking Post
Oil prices slid on Friday as expectations of softer US demand and higher OPEC+ output pressured the market ahead of a long weekend in the world’s biggest fuel consumer.
Brent crude for October delivery, which expired Friday, settled at $68.12 a barrel, down 50 cents or 0.73%. The more active November contract slipped 53 cents to $67.45, according to Reuters. WTI crude ended at $64.01, down 59 cents or 0.91%.
The drop comes as the summer driving season ends on Labor Day, marking the close of peak US fuel demand. “We’re going to see a jump in supply feeding into a lackluster demand market,” said Andrew Lipow of Lipow Oil Associates.
OPEC and its allies have been ramping up output to regain market share, adding to supply pressures. Traders are also awaiting next week’s OPEC+ meeting for signals on production strategy.
Geopolitical jitters added volatility earlier in the week, with Ukrainian strikes on Russian oil terminals briefly lifting prices. Reports of potential ceasefire talks among Ukraine’s European allies later tempered gains.
Still, US crude inventories showed stronger-than-expected draws in late August, suggesting industrial and freight demand remained firm, according to SEB analyst Ole Hvalbye.
Meanwhile, Washington’s push to curb India’s Russian oil imports has added another layer of uncertainty. Despite the US doubling tariffs on Indian imports, traders expect India to keep buying discounted Russian crude.
“The prevalent view is that India will ignore US sanction threats and continue purchases,” said PVM Oil Associates’ Tamas Varga.
