In Friday’s Asian trading session, oil prices showed little movement but were still on track for substantial weekly losses, as concerns grow over demand slowing due to new tariffs and an impending oversupply.

Crude briefly gained some support after U.S. President Donald Trump announced additional restrictions targeting Russia’s oil sector, including hefty tariffs imposed on India. These tariffs, part of Trump’s reciprocal measures against key trading partners that took effect Thursday, have sparked fears of further global economic disruption, which could weigh on oil consumption.

The dollar’s relative strength also contributed to downward pressure on crude prices, fueled by ongoing speculation about who might replace Federal Reserve Chair Jerome Powell.

At 21:41 ET (01:41 GMT), October Brent crude futures held steady at $66.43 per barrel, while West Texas Intermediate (WTI) futures were flat at $63.03 per barrel. Both benchmarks have dropped between 4% and 5% over the week.

Oil on track for worst weekly performance since late June amid demand and supply concerns

The sharp selloff in oil this week was largely driven by worries that demand is faltering, particularly as rising U.S. trade tariffs impact the global economy.

Signs of a cooling U.S. labor market added to the pessimism about demand prospects, although ongoing inventory declines helped temper these concerns somewhat.

On the supply side, oil prices remain pressured by OPEC+’s recent decision to boost production quotas in September, continuing its gradual reversal of nearly three years of output cuts.

Russia-Ukraine diplomatic developments add uncertainty

On Thursday, Russia confirmed that President Vladimir Putin plans to meet with Trump in the near future, as repeated calls intensify from Trump and Western leaders to resolve the prolonged Russia-Ukraine conflict.

The ongoing war, now in its fourth year, has supported oil prices by tightening Russian supply expectations. However, a potential ceasefire could undermine that support.

Although the U.S. has enacted stringent sanctions on Russia’s oil sector, these have had limited impact so far on global supply levels.

This week, Trump imposed tariffs of up to 50% on Indian imports of Russian oil and warned China, the top buyer, of similar measures.

These actions offered only brief relief for oil prices.

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