Oil prices head for steepest weekly drop since June amid tariff concerns

SINGAPORE: Oil prices held steady in early Asian trading on Friday but were on track for their sharpest weekly fall since late June, as fresh tariffs stoked fears about a slowdown in the global economy.

By 0050 GMT, Brent crude futures slipped three cents to $66.40 a barrel, heading for a weekly decline of over 4 percent. US West Texas Intermediate (WTI) crude edged down six cents, or 0.1 percent, to $63.82 a barrel, putting it on course for a drop of more than 5 percent this week.

The United States imposed higher tariffs on several major trading partners on Thursday, prompting worries that slower economic growth could dent demand for oil, ANZ Bank analysts noted.

Prices were already under pressure after the OPEC+ alliance decided last weekend to end its largest output cuts in September, months ahead of schedule.

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WTI futures have now fallen for six straight sessions, a run last seen in December 2023. A lower close on Friday would mark their longest losing streak since August 2021.

Market sentiment was further weighed down after the Kremlin confirmed that Russian President Vladimir Putin would meet US President Donald Trump in the coming days, fuelling hopes of a diplomatic resolution to the war in Ukraine.

Additional US tariffs on India for purchasing Russian crude helped slow the price slide slightly. However, analysts at StoneX said the measures are unlikely to significantly curb Russia’s oil exports to global markets.

Trump also signalled on Wednesday that China, Russia’s largest oil customer, could face similar tariffs on its crude imports from Moscow.