Oil Prices Set For Monthly Loss As Glut Concerns, Geopolitics Dominate

Oil edged lower to head for a monthly loss on concerns about a looming glut and geopolitical tensions, including US-led efforts to end the war in Ukraine.

Brent for November delivery traded below $68 a barrel, with the global benchmark more than 5% lower this month. West Texas Intermediate fell toward $64. Oil has lost ground in August on worries global supplies will run ahead of demand in the coming quarters, boosting stockpiles.

Traders are also focused on Ukraine, and crude flows from Russia. US President Donald Trump may release a statement on the situation there later on Thursday local time, according to White House Press Secretary Karoline Leavitt. Washington imposed a 50% levy on most Indian imports earlier this week to punish the country for buying Russian crude.

A meeting between Ukrainian President Volodymyr Zelenskiy and Russia’s Vladimir Putin was unlikely, according to German Chancellor Friedrich Merz. Trump has threatened “very big consequences” if Russia doesn’t come to the negotiating table and floated a two-week deadline for bilateral talks. 

Oil’s decline in August is the first monthly drop since April, when most commodities were hurt by a sharp escalation in Trump’s trade war and concerns that energy consumption would suffer. The worries about a surplus — which have been led by a forecast from the International Energy Agency — follow a campaign by OPEC+ to restore idled capacity.

Prices:

• Brent for November settlement fell 0.6% to $67.60 a barrel at 8:32 a.m. in Singapore

  • The October contract, which expires Friday, shed 0.6% to $68.22.

• WTI for October delivery slipped 0.6% to $64.21 a barrel.