WASHINGTON, Aug 29 — Oil prices fell on Friday, but were set for a weekly gain, tugged between uncertainty about Russian supply and expectations of lower demand as the summer driving season in the United States (US), the world's biggest fuel consumer, nears its close.
Brent crude futures for October delivery, which will expire on Friday, fell 57 cents, or 0.8 per cent, to US$68.26 by 1034 GMT, while the more active contract for November slid 43 cents, or 0.6 per cent, to US$67.55. West Texas Intermediate crude futures were down 42 cents, or around 0.7 per cent, at US$64.18.
Brent was up 0.6 per cent on the week, while WTI was up one per cent.
PVM Oil Associates analyst Tamas Varga said the market was shifting its focus in part towards next week's OPEC+ meeting.
Crude output has increased from the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, as the group has accelerated output hikes to regain market share, raising the supply outlook and weighing on global oil prices.
Price rose earlier in the week due to Ukrainian attacks on Russian oil export terminals.
SEB bank analyst Ole Hvalbye said in a note that US crude inventories for the week ending August 22 showed higher-than-expected draws, implying late-summer demand was still firm, particularly in industrial and freight-related sectors
However, the end of US summer driving demand, with the Labour Day holiday on Monday, and the increased supply from major OPEC+ producers becoming available, have weighed on prices.
In a note, Commonwealth Bank of Australia commodities analyst Vivek Dhar forecasted that Brent oil futures would fall to US$63 a barrel in the fourth quarter of 2025.
Investors are also watching for India's response to pressure from the US to stop buying Russian oil, following President Donald Trump's decision to double tariffs on imports from India to as much as 50 per cent on Wednesday.
So far, India has defied the US, and Russian oil exports to India are set to rise in September, traders said.
"The prevalent view is that Russian sanctions are not forthcoming, and India will ignore US sanction threats and continue buying Russian crude oil at heavily discounted prices," PVM's Varga said.
