A refinery in Martinez, California. Photographer: David Paul Morris/Bloomberg
(Bloomberg) — Oil fell on course for a monthly loss, with trading dominated by concerns about a looming glut and geopolitical issues, including US-led efforts to end the war in Ukraine.
West Texas Intermediate for October delivery slid about 1% to trade near $64 a barrel, with the US benchmark about 7% lower this month. Brent fell toward $68. Oil has lost ground in August on worries that global supplies will run ahead of demand in the coming quarters, boosting stockpiles.
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The commodity slumped to intraday lows on Friday after US consumer sentiment declined to a three-month low, reflecting concerns that tariffs will hurt the economy.
Investors are also focused on Ukraine and potential shifts in crude flows from Russia. US President Donald Trump was “not happy” about Moscow’s recent strikes on Ukraine, White House Press Secretary Karoline Leavitt said. Washington has imposed a 50% levy on most Indian imports to punish the South Asian nation for buying Russian crude.
Moscow unleashed a wave of drone and missile strikes on Kyiv earlier this week, in defiance of US calls for an end to the fighting, killing 18 people, Ukrainian authorities said.
A meeting between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin was unlikely, according to German Chancellor Friedrich Merz. Trump has threatened “very big consequences” if Moscow doesn’t come to the negotiating table.
Oil’s decline in August would be the first monthly drop since April, when most commodities were hurt by a sharp escalation in Trump’s trade war and concerns that energy consumption would suffer. The worries about a surplus — with the International Energy Agency forecasting a record glut — follow a campaign by OPEC+ to restore idled capacity.
“More OPEC+ oil is coming to the market amid worries over US economic growth, which keeps the market well-supplied,” said Jens Naervig Pedersen, a strategist at Danske Bank AS. “At the same time, the US looks ready to ramp up sanctions on Russian crude buyers.”
Trading volumes on Friday were muted ahead of the Labor Day holiday weekend in the US, contributing to exaggerated price swings.
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