Oil settles lower, deepens weekly loss to over 1.5%

Oil drilling rigs

Oil prices fell on Friday, deepening their weekly losses amid ongoing market uncertainty over global trade developments, despite the European Union agreeing on a new sanctions package against Russia.

Brent crude futures for September delivery dropped 0.35% (24 cents) to $69.28 per barrel, ending the week with a 1.53% loss.

WTI crude futures for August delivery fell 0.30% (20 cents) to $67.34 per barrel, recording a weekly decline of 1.62%.

Prices came under pressure from persistent trade uncertainty as the August 1 deadline for US tariffs approaches, with Washington still undecided in negotiations with key trade partners including Japan and the European Union.

A University of Michigan survey showed a decline in US consumer inflation expectations for both the short and long term in July, alongside a slight improvement in overall economic sentiment — raising hopes of the Federal Reserve resuming interest rate cuts.

Limiting oil losses, however, was the EU's approval of its 18th sanctions package on Russia, which includes introducing a flexible price cap on Russian oil — set at 15% below the global benchmark average, replacing the current fixed cap of $60 per barrel.