Oil prices slipped in Asian trading on Friday after rallying the previous session, as markets grappled with dimming prospects of a Russia-Ukraine peace deal and evaluated the impact of additional U.S. tariffs on India.
As of 21:52 ET (01:52 GMT), Brent Oil Futures expiring in October dropped 0.8% to $68.10 per barrel, while West Texas Intermediate WTI crude futures declined 0.7% to $64.14 per barrel.
Oil prices settled nearly 1% higher on Thursday, shrugging off early losses as U.S. data showed a smaller-than-expected decline in crude stockpiles.
Both contracts are set for monthly losses of over 6%, dragged by steady production hikes by the Organization of the Petroleum Exporting Countries (OPEC).
Hopes for Russia-Ukraine peace talks fade
Peace hopes have dimmed after U.S. President Donald Trump last week urged Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin to hold direct talks before considering a trilateral summit hosted by Washington.
While Trump offered U.S. security guarantees short of troop deployment, no date or venue for a meeting has been set, and analysts see little progress in the near term.
Meanwhile, Russia carried out a fresh wave of deadly attacks on Kyiv, damaging buildings housing the EU mission and the British Council.
“The lack of progress towards a peace deal means risks of sanctions and secondary tariffs continue to hang over the oil market,” ING analysts said in a note.
Traders assess impact of 50% tariffs on India
In a move tied to India’s aggression in buying Russian crude, an additional 25% U.S. tariff on Indian imports took effect on Wednesday, doubling the total duty to 50% starting August 27.
This step is part of broader pressure aimed at curbing India’s ties with Russia amid the Ukraine war.
Indian refiners briefly paused Russian oil purchases after secondary tariffs were imposed but have since resumed buying, with the measures proving insufficient to curb flows.
Analysts believe the market will be cautiously watching Russian oil flows to India closely going forward to gauge the impact.
Source :
https://www.investing.com/news/commodities-news/oil-prices-retreat-amid-waning-hopes-for-russiaukraine-peace-deal-4215767
