Brent crude futures settled down 5 cents, or 0.1%, at $65.94 a barrel, while U.S. West Texas Intermediate (WTI) crude finished 29 cents, or 0.5%, lower at $61.50 a barrel. Both benchmarks ended the week more than 7% higher, their biggest weekly gain since mid-June.
Earlier in the session, both contracts had extended Thursday’s 5% rally following U.S. sanctions on Rosneft and Lukoil, but traders sold off later in the day amid doubts over how aggressively the measures would be applied.
“There is renewed skepticism these sanctions will be as harsh as they are said to be,” said John Kilduff, partner at Again Capital LLC.
The sanctions, aimed at pressuring Russian President Vladimir Putin to end the war in Ukraine, target companies that together account for more than 5% of global oil output. Following the announcement, Chinese refiners suspended short-term purchases of Russian oil, while Indian refiners, the largest buyers of seaborne Russian crude, began cutting imports.
Despite the potential disruption, investors doubt a lasting impact. Russia’s Putin dismissed the sanctions as an “unfriendly act” and insisted they would not significantly harm Russia’s economy, while Kuwait’s oil minister said OPEC was prepared to raise production if needed to fill any shortfall.
The U.S. said it was ready to take further action, and Britain and the European Union also expanded restrictions on Russian oil and liquefied natural gas, adding Chinese refiners and traders to their sanctions lists.
Looking ahead, market attention shifts to next week’s meeting between Trump and Chinese President Xi Jinping, as traders watch whether the two leaders can defuse escalating trade tensions that have weighed on global energy demand.