Global crude oil prices closed the week ending August 8 lower, as market jitters over U.S. trade tariffs and easing geopolitical risks overshadowed gains from falling inventories and hopes of a potential Federal Reserve rate cut.
On Friday, Brent crude settled at $66.59 per barrel, representing a 3.9% drop from last week’s $69.27 close. Likewise, West Texas Intermediate (WTI) fell to $63.58 per barrel, down 3% from $65.55 the previous week.
Oil prices initially climbed after eight OPEC+ members — including Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria, and Oman — announced a collective production increase of 547,000 barrels per day for September, continuing the phased reversal of 2.2 million bpd in voluntary cuts that began in April.
The rally was further supported by expectations that the Fed could lower interest rates in September. San Francisco Fed President Mary Daly hinted at an impending cut, citing weakening U.S. labour market data and muted inflationary pressures despite tariffs.
By midweek, oil extended gains as U.S. President Donald Trump threatened new tariffs on India over its imports of Russian crude. The market reacted again on Thursday after Trump signed a decree imposing a 25% tariff on certain Indian imports, effective in 21 days, with exemptions during a transition period.
Data from the U.S. Energy Information Administration (EIA) added further support, showing a 3 million-barrel drawdown in crude stockpiles and a 30,000 bpd drop in domestic output.
However, prices reversed on Friday amid reports of potential peace talks between Trump and Russian President Vladimir Putin to end the war in Ukraine. If confirmed, the meeting would be the first in-person dialogue between U.S. and Russian leaders since June 2021, when Joe Biden met Putin in Geneva.
