Oil headed for its biggest weekly drop since June, as traders assessed that US efforts to end the war in Ukraine would not impact supplies, even as Washington imposed sanctions on India for importing Moscow's crude.

West Texas Intermediate crude traded below $64 a barrel, down more than 5% this week, while Brent closed near $66. The US benchmark has declined for the past six days, marking its worst decline since 2023. US President Donald Trump, who has set a Friday deadline for Moscow to agree to a ceasefire, has said he is willing to meet with Vladimir Putin, although the Russian leader has not agreed to meet with Ukrainian President Volodymyr Zelenskiy.

Earlier this week, the US doubled levies on all Indian imports to 50% as a penalty for the country taking Russian oil, prompting local state-owned refiners to withdraw from purchases and seek other sources. Meanwhile, Treasury Secretary Scott Bessent said the US may also impose tariffs on China at some point, when asked about targeting countries that buy Russian energy.

Oil prices plummeted in August after three months of gains. Investors braced for a potential supply glut later this year as OPEC+ continued its campaign to ease production curbs. Meanwhile, oil futures were weighed down by signs of slower growth in the world's largest economy as Trump's broader trade tariffs impacted economic activity, posing a risk to energy demand. (alg)

Source: Bloomberg