Oil prices held steady as the market weighed the prospects for Russian crude flows to India after the Trump administration stepped up criticism of the trade deal ahead of an expected tariff hike.

Brent held above $67 a barrel, on track for its biggest weekly gain since early July. White House trade adviser Peter Navarro again criticized India for continuing to buy Russian oil and said he sees US import levies on the country doubling as planned on August 27.

President Donald Trump has threatened to raise tariffs on Indian goods to 50%, half of which is due to purchases of Russian crude. However, refineries in the South Asian nation have resumed buying barrels after a brief pause, while a Moscow official expects flows to be maintained.

There was little sign of progress toward a deal on Friday as Ukraine's president said he was not in contact with Russia in peace talks. Although Navarro's recent comments remind us of the key risks surrounding Russian energy amid Trump's efforts to end the war in Ukraine, oil prices have largely declined in recent weeks amid thinner summer trading.

When traders return to their desks in the coming days, they will return to a market largely expected to be oversupplied in the fourth quarter.

"The oil market is heading for a surplus in the coming quarters that is unusually large but also widely anticipated at this point," wrote Morgan Stanley analysts, including Martijn Rats and Charlotte Firkins, in a note. "The first suggests prices will likely weaken; the second suggests this is unlikely to turn into a disorderly sell-off." (alg)

Source: Bloomberg