Oil prices fell on Friday (August 29th) but were poised for weekly gains, swayed by uncertainty over Russian supplies and expectations of falling demand as the summer driving season nears its end in the United States, the world's largest fuel consumer.

Brent crude futures for October delivery, which expire on Friday, fell 36 cents, or 0.5%, to $68.26 at 08:16 GMT, while the more active November contract fell 29 cents, or 0.4%, to $67.69. West Texas Intermediate crude futures fell 28 cents, or 0.4%, to $64.32.

Brent was poised for a weekly gain of 0.8%, while WTI was expected to rise 1%. The market is partly shifting its focus to next week's OPEC+ meeting, said Tamas Varga, an analyst at PVM Oil Associates. Crude oil production from the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, is rising as the countries have accelerated production increases to regain market share, raising the supply outlook, weighing on global oil prices.

Crude oil prices rose earlier in the week due to Ukraine's attack on Russian oil export terminals. U.S. crude inventories for the week ending August 22 showed a higher-than-expected drawdown, suggesting end-of-summer demand remains strong, particularly in industrial and transport-related sectors, said analyst Ole Hvalbye at SEB Bank in a note.

However, the end of the U.S. summer demand-boosting season with the Labor Day holiday on Monday and more supply from key OPEC+ producers have weighed on prices. Commonwealth Bank of Australia commodities analyst Vivek Dhar in a note predicted Brent oil futures would fall to $63 per barrel in the fourth quarter of 2025.

Investors are also watching India's response to U.S. pressure to stop buying Russian oil, after Trump doubled tariffs on Indian imports to 50% on Wednesday. So far, India has defied the US, and Russian oil exports to India are expected to increase in September, according to traders. "The general view is that Russian sanctions will not be enforced immediately, and India will ignore the threat of US sanctions and continue to buy Russian crude at deeply discounted prices," added PVM's Varga. (alg)

Source: Reuters