Oil prices slipped on Friday over concern that rising US inflation and President Donald Trump’s push for new tariffs could sap demand, adding to pressure from the International Energy Agency's (IEA) forecast for stronger global supply growth.
Brent crude was trading at $65.72 per barrel at 10.17 a.m. local time (0717 GMT), down 0.5% from the previous close of $66.08.
US benchmark West Texas Intermediate (WTI) decreased by 0.6% to $61.68 from $62.05 in the prior session.
Investors grew cautious as tariff-driven inflation risks clouded expectations that the Federal Reserve (Fed) still has room to cut interest rates.
International Monetary Fund (IMF) spokesperson Julie Kozack said at a news conference that, given the downside risks to employment, there is room for the Fed to start lowering its policy rate.
Analysts say a rise in inflation in the US, the world's top oil consumer, could force the Fed to delay interest rate cuts, weighing on demand and pushing prices lower.
Meanwhile, the Financial Times reported that the US will ask G7 members, along with India and China, to impose steep tariffs on Russian oil to push Moscow toward peace talks with Ukraine.
G7 finance ministers are expected to discuss the proposal in a video call on Friday.
Trump this week urged the EU to impose tariffs of up to 100% on India and China.
Last month he raised tariffs on Indian imports to 50% and in April increased duties on Chinese goods, before later adjusting some measures amid market concerns.
Prices also weakened after the IEA said in its September Oil Market Report that global supply will rise faster than expected this year on planned output increases by OPEC and its allies, known as OPEC+.
The agency revised up supply growth by 190,000 barrels per day in 2025 and 150,000 in 2026.
World output is expected to climb by 2.7 million barrels per day to 105.8 million this year and by another 2.1 million to 107.9 million in 2026. OPEC+ is set to add 1.3 million barrels per day in 2025 and 1 million in 2026, roughly matching growth from producers outside the group.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr