Oil prices fell on Friday but are expected to show a weekly gain, caught between expectations of lower demand as the end of summer approaches in the US, the world's largest consumer, and uncertainty over the availability of Russian supplies, UNN reports with reference to Reuters.
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Brent crude futures for October delivery, which expire on Friday, fell 53 cents, or 0.8%, to $68.09 by 02:51 GMT (05:51 Kyiv time), while the more active November delivery contract fell 48 cents, or 0.7%, to $67.50. West Texas Intermediate (WTI) crude futures fell 51 cents, or 0.8%, to $64.09.
Brent crude prices are expected to rise by 0.6% for the week, while WTI prices are expected to rise by 0.8%.
Prices rose amid attacks on Russian export terminals earlier this week and after German Chancellor Friedrich Merz said on Thursday that a meeting between Kremlin head Vladimir Putin and Ukrainian President Volodymyr Zelensky would not take place.
However, the end of the summer demand surge in the US with the Labor Day holiday on Monday and increased supply from major producers due to the end of voluntary production cuts put pressure on prices.
"We expect that increased OPEC+ supply and a seasonal decline in global refining volumes from September will lead to an increase in global oil inventories in the coming months. We forecast Brent crude futures to fall to $63 per barrel in the fourth quarter of 2025," said Vivek Dhar, a commodity analyst at Commonwealth Bank of Australia, in his note.
Russian attacks on the Ukrainian capital Kyiv on Thursday morning, which killed 23 people, raised fears that the US could respond with increased sanctions, the publication writes.
"There is continued uncertainty about whether the US and Europe might tighten sanctions against Russia after its attack on Ukraine, and about the potential impact of US tariffs on India, which makes investors reluctant to take large positions," said Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, a division of Nissan Securities Investment.
Investors are also watching India's reaction to pressure from the US to stop buying Russian oil after Trump doubled tariffs on imports from India to 50% on Wednesday.
However, according to traders, Russian oil exports to India are expected to increase in September despite US pressure.
Saudi Arabia, the world's largest oil exporter, may lower October oil prices for Asian buyers amid high supply and weak demand, refinery sources said.
Russian oil supplies to Hungary and Slovakia via the Druzhba pipeline resumed after an interruption caused by an attack last week, Hungarian oil company MOL and Slovakia's economy minister said on Thursday.