NEW DELHI – Oil prices edged lower in early Friday trade, giving up some of the sharp gains from the previous session but staying on track for a weekly increase, as new U.S. sanctions on Russia’s top oil producers stoked global supply concerns.
Brent crude futures slipped 36 cents, or 0.55%, to $65.63 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 33 cents, or 0.58%, to $61.43 as of 0333 GMT. Despite the dip, both benchmarks were poised for about a 7% weekly gain — their biggest since mid-June — following Thursday’s more than 5% jump.
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Market analysts said profit-taking was likely behind the modest pullback, with investors waiting for further developments in the Russia-Ukraine conflict. Vandana Hari of Vanda Insights noted that traders were in a “wait-and-watch mode,” anticipating either escalation or de-escalation in geopolitical tensions.
The U.S. sanctions targeted Russia’s energy giants Rosneft and Lukoil, which together account for over 5% of global oil output. The move prompted Chinese oil companies to suspend Russian crude purchases temporarily, while Indian refiners — the largest importers of seaborne Russian oil — plan to sharply reduce imports.
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Kuwait’s oil minister said OPEC stands ready to counter any supply shortage by adjusting production cuts. Meanwhile, Russian President Vladimir Putin dismissed the sanctions as hostile but ineffective, underscoring Russia’s key role in the global energy market.
Britain imposed similar sanctions last week, and the European Union followed with a new package banning Russian LNG imports and targeting Chinese refiners linked to the trade. The developments come ahead of a highly anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping next week, which investors hope could ease ongoing trade tensions.