Oil prices were relatively unchanged on Friday as the markets awaited a meeting between Russian president Vladimir Putin and his US counterpart Donald Trump,
Brent crude futures gained 16 cents or 0.2 per cent to close at $66.59 a barrel, while the US West Texas Intermediate (WTI) crude futures traded flat at $63.88 per barrel.
Despite this, prices marked their steepest weekly losses since late June on a tariff-hit economic outlook, with Brent falling 4.4 per cent over the week, and WTI shedding 5.1 per cent.
Bloomberg reported that the US and Russia were aiming to reach a deal to halt the war in Ukraine that would lock in Russia’s occupation of territory seized during its military invasion.
The report said US and Russian officials are working towards an agreement on territories for a planned summit meeting between Presidents Trump and Putin as early as next week.
The potential meeting raises expectations of a diplomatic end to the war in Ukraine, which could lead to eased sanctions on Russia, and comes as trade tensions have been on the rise between Trump and buyers of Russian oil.
Also, President Trump threatened to increase tariffs on India if it kept purchasing Russian oil. The American President hinted that China, the largest buyer of Russian crude, could be hit with tariffs similar to those levied against Indian imports.
Market analysts also warned that higher US tariffs on imports from a host of trade partners went into effect on Thursday, raising concern over economic activity and demand for crude oil.
Traders are also looking at the supply side after the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) agreed last Sunday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share.
Pressure also came as the US Dollar firmed on Friday but headed for a weekly fall. A stronger dollar hurts demand for Dollar-denominated crude from foreign buyers.
The US oil rig count, an indicator of future supply, rose by one to 411 this week.