Oil markets retreated in Asian trading on Friday after posting gains the previous day, as investors assessed weakening prospects for a Russia-Ukraine peace agreement and evaluated the impact of new U.S. tariffs on India.
By 21:52 ET (01:52 GMT), October Brent futures were down 0.8% at $68.10 per barrel, while WTI futures fell 0.7% to $64.14 per barrel.
On Thursday, both benchmarks rose nearly 1%, shrugging off earlier losses after U.S. inventory data showed crude stockpiles fell less than expected. Despite short-term gains, both contracts are set for monthly losses of more than 6%, pressured by steady OPEC production increases.
Peace Negotiations Lose Steam
Optimism for talks between Russia and Ukraine has cooled after U.S. President Donald Trump last week urged Presidents Vladimir Putin and Volodymyr Zelenskyy to meet directly before any trilateral summit in Washington.
While Trump offered security assurances without committing troops, no meeting date or location has been set, and analysts see limited progress in the near term. Russia has also launched new attacks on Kyiv, targeting 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 noted.
U.S. Tariffs Target Indian Oil Imports
As part of a broader effort to curb India-Russia trade amid the Ukraine conflict, the U.S. imposed an additional 25% tariff on Indian imports on Wednesday, doubling the total duty to 50% starting August 27.
Indian refiners paused Russian oil purchases briefly but resumed after the tariffs were applied, suggesting the measures have not substantially slowed imports. Analysts expect markets to monitor Russian oil flows to India closely in the coming weeks to gauge impact.
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