Oil Prices Slip as Geopolitical Risks and Tariffs Cloud Outlook

Oil prices fell in Asian trading on Friday, reversing some of Thursday’s gains, amid fading hopes for a Russia-Ukraine peace deal and renewed focus on U.S. tariffs on India.

• Brent October futures dropped 0.8% to $68.10/barrel.
• WTI crude futures fell 0.7% to $64.14/barrel.
• Both contracts are on track for monthly losses exceeding 6%, pressured by steady OPEC production increases.

Geopolitical factors:

• Peace prospects between Russia and Ukraine have weakened, with continued attacks on Kyiv and no confirmed meeting dates for direct talks.
• Analysts note that ongoing risks of sanctions and secondary tariffs continue to weigh on the market.

Tariff impact on India:

• The U.S. doubled tariffs on Indian imports to 50% starting August 27, aiming to reduce India’s Russian oil purchases.
• Indian refiners briefly paused Russian imports but have resumed, highlighting that tariffs alone have not significantly curtailed flows.

Overall, oil markets are navigating geopolitical uncertainty and mixed supply-demand signals, keeping volatility elevated.