Oil pares weekly gain as Trump calls for low prices to end war

Oil pared a second weekly gain as renewed calls by US President Donald Trump for lower prices to pressure Moscow to end the war in Ukraine weighed against renewed attacks on Russian energy infrastructure.

Brent traded above $67 a barrel after losing 0.8% in the previous session while West Texas Intermediate was below $64. Trump said the war would end “if the price of oil comes down,” a sign of his preferred strategy to halt the flow of petrodollars that fund Russia’s war effort. He also repeated calls for countries to stop buying oil from the OPEC+ member.

While oil futures are set to edge higher this week, they have been stuck in a tight range since early August as the market is buffeted by rising geopolitical risks and bearish fundamentals. A faster-than-expected output reversal by the Organization of the Petroleum Exporting Countries and its allies has led the International Energy Agency to predict a record surplus next year.

Meanwhile, Ukraine attacked two Russian oil refineries on Thursday as it steps up its campaign to hit Moscow’s biggest source of funds — leading to concerns further closures may threaten to tighten global markets. Russian refining runs have now dropped below 5 million barrels a day, the lowest since April 2022, according to estimates from JPMorgan Chase & Co.

Investors will also be watching the call later on Friday between Trump and Chinese President Xi Jinping for a potential easing of trade tensions between the world’s two biggest economies. The two leaders are due to speak at 9 a.m. Washington time.

Also Read: Asian stocks rise as global gauge hits new peak