Brent crude settled at $66.89, down 75 cents, or 1.1%, while U.S. West Texas Intermediate (WTI) fell 81 cents, or 1.2%, to close at $64.35. Both contracts marked their fifth consecutive daily loss, with Brent notching its weakest close since June 10 and WTI its lowest since June 5.
The market’s tone was shaped by President Trump’s unexpectedly positive remarks regarding negotiations with Moscow. While the administration has spent recent weeks threatening aggressive secondary sanctions on buyers of Russian crude—including India—the prospect of a diplomatic resolution introduced fresh uncertainty. Traders now appear less convinced that new penalties will be enacted by the Friday deadline, reducing the perceived risk of major supply disruptions.
At the same time, the market continues to grapple with oversupply concerns. OPEC+ has already committed to increasing production by 547,000 barrels per day in September and is widely expected to discuss further unwinding of cuts at its next meeting. The group’s growing spare capacity and willingness to tap into it have pressured prices lower despite underlying geopolitical tensions.
While U.S. crude inventories provided a mildly supportive signal—with a reported draw of 3 million barrels last week—the impact was limited in the face of broader macro and policy-driven headwinds.
Traders now await clear direction from the White House on whether secondary sanctions will be implemented as threatened. Without concrete action, the risk premium tied to Russian crude disruption may continue to unwind, leaving oil exposed to further downside pressure in the near term.