Oil set for steepest weekly losses since June as tariffs cloud demand outlook
Brent crude futures were down three cents to US$66.40 a barrel at 0050 GMT, on track to decline more than 4 per cent week-over-week. US West Texas Intermediate crude futures were down six cents, or 0.1 per cent, to US$63.82 a barrel, set to fall more than 5 per cent on a weekly basis.
Higher US tariffs against a host of trade partners went into effect on Thursday. The tariffs raised concerns of weaker economic activity, which would hit demand for crude oil, ANZ Bank analysts said in a note.
Oil prices were already reeling from the OPEC+ group's decision last weekend to fully unwind its largest tranche of output cuts in September, months ahead of target.
At Thursday's close, WTI futures had dropped for six consecutive sessions, matching a declining streak last recorded in December 2023. If prices settle lower on Friday, it will be the longest streak since August 2021.
Adding more pressure on the oil market, the Kremlin on Thursday confirmed Russian President Vladimir Putin would meet US President Donald Trump in the coming days, raising expectations of a diplomatic end to the war in Ukraine.
Additional US tariffs against India for buying Russian crude oil helped limit the decline in oil prices to some extent. The move, however, is unlikely to reduce the flow of Russian oil to outside markets in a material way, StoneX analysts wrote to clients on Thursday.
Trump on Wednesday also said China, the largest buyer of Russian crude oil, could be hit with tariffs similar to those being levied against Indian imports.
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