Oil heads for biggest weekly loss since June

Oil prices rose slightly on Friday but were on track to record their biggest weekly losses since late June, amid tariff-driven economic concerns and the possibility of a meeting between US President Donald Trump and Russian President Vladimir Putin.

By 11:04 GMT, Brent crude futures were up 52 cents, or 0.78%, at $66.95 a barrel, while US West Texas Intermediate (WTI) crude rose 43 cents, or 0.67%, to $64.31 a barrel.

Brent crude is set to decline by 3.9% for the week, while WTI is heading for a weekly loss of 4.5% compared to last Friday’s close.

Analysts at ANZ Bank noted in a memo that new US tariffs on several trading partners, which came into effect on Thursday, have raised concerns about economic activity and demand for crude oil.

The tariffs come against the backdrop of a weaker-than-expected US labor market, along with Thursday’s Kremlin announcement that Putin and Trump will meet in the coming days, amid rising trade tensions between the US and buyers of Russian oil.

Earlier this week, Trump threatened to raise tariffs on India if it continues buying Russian oil — a move seen by markets as further pressure on Russia to reach an agreement with the US, according to independent analyst Tina Teng.

Trump also warned that China — the largest buyer of Russian crude — could face similar tariffs to those imposed on Indian imports.

The prospect of a Trump-Putin meeting has sparked hopes of a diplomatic resolution to the war in Ukraine, potentially leading to an easing of sanctions on Russia. Russian stocks surged following the announcement.

Analysts at Commerzbank wrote in a note: “There may be a meeting between Trump and Putin in the near future, which could signal that Trump is adopting a wait-and-see approach regarding further sanctions on Russia and its allies.” Still, some analysts remain cautious.

Tamas Varga, analyst at PVM Oil, said: “The Russian leader is expected to insist on his territorial demands, which are difficult for the invaded country to accept, while his American counterpart will likely push for a ceasefire.”

He added: “A breakthrough in negotiations is unlikely, and the threat of US secondary sanctions on any party dealing in the Russian energy sector — including China and India — remains on the table.”