Brent crude settled at $65.85, down 99 cents (−1.5%), while U.S. West Texas Intermediate (WTI) closed at $62.80, a drop of $1.16 (−1.8%). For the week, Brent slipped 1.1% and WTI lost 1.7%.
President Donald Trump arrived in Alaska for his meeting with Russian President Vladimir Putin, saying he wants to see a Ukraine ceasefire “today.” While Trump expressed optimism about Russia’s willingness to end the war, he has also threatened secondary sanctions on countries such as India and potentially China if peace talks fail. Traders noted that an actual ceasefire could pressure oil prices in the near term by raising the prospect of more Russian barrels hitting global markets.
The bearish tone was reinforced by weak Chinese economic data, with factory output growth slowing to an eight-month low and retail sales posting their slowest growth since December. Despite a 8.9% year-on-year rise in July refinery throughput, volumes fell from June’s highs, and increased oil product exports suggested softer domestic fuel demand.
Forecasts for a widening market surplus also weighed on sentiment. Bank of America now projects an average surplus of 890,000 barrels per day from July 2025 through June 2026, citing growing OPEC+ supply. The International Energy Agency similarly warned this week that the market looks “bloated” following the group’s latest production increases.
On the supply front, the U.S. oil rig count rose by one to 412, according to Baker Hughes, adding to expectations of continued strong output.