Crude Oil Slips on Demand Worries; Russia-Ukraine Tensions Keep Prices Steady

Crude oil prices inched lower in Asian trade on Friday as concerns over slowing global economic growth and weakening demand weighed on sentiment. Brent crude for August dropped 0.1% to $65.27 per barrel, while U.S. West Texas Intermediate (WTI) crude also slipped 0.1% to $62.39.

Weekly Gains Still on Track

Despite the daily dip, both Brent and WTI are set to post their first weekly gains in 3 weeks, rising between 2% and 4.5%. This rise is mainly due to expectations of tighter global oil supplies in the coming months.

Sanctions and Supply Cuts Support Market

Traders are betting on more sanctions from the U.S. against Russia and Iran, which could reduce global oil supply. This comes alongside OPEC+’s decision to increase output slightly in July, in line with expectations.

Demand Concerns from the U.S. and China

However, fears around slowing demand continue. Recent economic data from the U.S. and China—both top oil consumers—suggest weaker growth. Rising inventories of oil products in the U.S. have added to demand-related worries. Additionally, ongoing U.S.-China trade tensions are fueling uncertainty, despite a recent phone call between Presidents Trump and Xi.

Russia-Ukraine Conflict Adds Support

Geopolitical tensions between Russia and Ukraine also played a role. Russia launched new missile and drone strikes on Ukraine in response to earlier attacks. These actions came shortly after a phone call between Trump and Putin, raising doubts about a ceasefire. The conflict could lead to tougher sanctions on Russian oil, especially targeting buyers like China and India.

Read More: Best Oil and Gas Stocks in June 2025 Based on 5-Yr CAGR: Chennai Petroleum Corp, Oil India, and More. 

Conclusion

While oil prices slipped slightly due to fears of slowing demand, ongoing geopolitical tensions and expectations of tighter supply are helping keep prices from falling further. The market remains cautious, balancing weak economic signals with the risk of escalating sanctions and supply disruptions.

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