Oil prices tumbled Friday with WTI crude slipping to $63 a barrel and Brent falling below $66, both hitting near two-month lows. The drop put both benchmarks on track for a weekly loss of about 5%–their steepest decline since late June–as concerns over supply disruptions eased.

Rahul Kalantri, VP–commodities, Mehta Equities Ltd, said, "Hopes for progress in the Ukraine conflict, with a summit between U.S. president Donald Trump and his Russian counterpart Vladimir Putin expected soon, have eased supply disruption fears. This comes despite U.S. sanctions on India for importing Russian oil and new tariffs on Indian goods, alongside potential levies on China." 

Persistent trade tensions, coupled with expectations of higher OPEC production, are fuelling worries over slowing global economic growth and weakening energy demand. 

Kotak Securities Research report states, "WTI crude oil futures prices recover from a day's low of $63.20 to above $64 a barrel, after six consecutive declines, as traders awaited Trump’s next steps to end the war in Ukraine."

Trump, who set a Friday deadline for Moscow to agree to a truce, signalled willingness to meet Putin even without Ukrainian President Zelenskiy’s participation. Earlier, Trump doubled tariffs on all Indian imports to 50% for buying Russian crude, prompting Indian refiners to seek alternative supplies. 

"U.S. Treasury secretary, Scott Bessent, hinted at possible tariffs on China over similar purchases. Oil has fallen in August amid OPEC+ output increases and slower U.S. growth from broader tariffs. Markets see limited tightening ahead, with Brent’s prompt spread narrowing to 58 cents from over $1 last month, reflecting easing near-term supply tightness. Russian Urals cargoes are being diverted to Chinese buyers, underscoring market adaptability," the report noted.