Oil Prices Fall 5% Weekly Amid US-India Tariffs, Russia Talks

Oil prices are experiencing their steepest weekly decline since June, with West Texas Intermediate (WTI) crude falling below $64 per barrel and Brent crude near $66, driven by easing concerns over Russian supply disruptions and growing fears of weaker demand due to trade tensions and tariffs. US President Donald Trump has set a deadline for Moscow to accept a ceasefire in the Ukraine war but remains open to meeting Russian President Vladimir Putin even if Ukrainian President Zelenskiy is not involved, raising hopes for diplomatic progress that have softened geopolitical risk premiums. In response to India's continued purchases of Russian oil, the US doubled tariffs on Indian imports to 50%, prompting Indian refiners to reduce Russian crude purchases, while Treasury Secretary Scott Bessent hinted at potential future tariffs on China for similar actions. The market is also adjusting to OPEC+'s decision to unwind production cuts earlier than planned, contributing to concerns about a potential oil glut as the peak demand season ends. Additionally, signs of slowing US economic growth amid broader trade tariffs are weighing on energy demand projections. Overall, the combination of eased supply fears, tariff-induced demand concerns, and OPEC+ output increases is driving a bearish outlook for oil prices.