Brent crude settled at $66.59, up 16 cents, or 0.2%, while U.S. West Texas Intermediate (WTI) closed flat at $63.88. For the week, Brent fell 4.4%, while WTI posted a 5.1% decline from last Friday’s close.
The market remains focused on geopolitical developments after reports emerged that the U.S. and Russia are actively negotiating terms for a potential peace deal in Ukraine. According to Bloomberg, the proposed agreement could involve U.S. recognition of Russian-occupied territories, with a meeting between Trump and Putin potentially happening as early as next week.
Such an outcome could lead to a significant easing of sanctions on Russian oil exports, a scenario that would likely increase global supply and pressure prices further. The possibility has intensified headline risk, with markets reacting to each new signal from both sides.
At the same time, trade tensions have escalated. Trump warned of additional tariffs on India and China over their continued purchases of Russian crude. Higher U.S. tariffs on imports from a wide range of trading partners went into effect Thursday, raising concerns about slowing global economic activity and oil demand.
On the supply side, OPEC+ has committed to a 547,000 barrel-per-day output hike in September, continuing its push to unwind earlier voluntary cuts. Meanwhile, the U.S. oil rig count rose by one to 411, suggesting further domestic production growth.
Market sentiment was further shaped by monetary policy expectations. Trump’s nomination of Stephen Miran to the Federal Reserve’s Board of Governors has raised speculation of a more dovish stance going forward, potentially leading to lower interest rates that could support economic growth—and by extension, oil demand—over the longer term.
Despite Friday’s pause in selling, the broader tone remains bearish as supply builds and macroeconomic risks intensify.