Oil prices fell Wednesday as concerns over US demand weighed on the outlook in the world’s top consumer, while geopolitical and trade risks kept markets on edge ahead of an OPEC+ meeting.
Brent crude was trading at $68.63 per barrel at 10.39 a.m. local time (0739 GMT), down 0.5% from the previous close of $68.97.
US benchmark West Texas Intermediate (WTI) fell 0.5% to $64.98 from $65.34 in the prior session.
US manufacturing activity continued to contract in August, with the ISM manufacturing PMI rising slightly to 48.7% from July, but remaining below the expected 49%, signaling ongoing sector weakness.
An appeals court ruled on Friday that most of US President Donald Trump's tariffs were illegal, challenging the administration's trade measures.
The court delayed implementing its decision until Oct. 14 to allow time for a Supreme Court appeal. Trump said he will request a fast-track ruling to reverse the decision.
Analysts warned that if the tariffs are struck down, the US government could be forced to refund revenue collected from the tariffs, potentially increasing the country's budget deficit.
On the supply side, the US Treasury sanctioned a network of companies and vessels led by an Iraqi-Kittian businessman for disguising Iranian oil as Iraqi crude.
These latest sanctions, following the collapse of nuclear talks, are supporting oil futures by signaling tighter supplies.
Markets also focused on potential US-India trade talks after Washington raised tariffs on Indian imports from 25% to 50% over its Russian oil purchases.
Saudi Arabia and Iraq reportedly halted crude shipments to a major Russian-backed Indian refinery following EU sanctions in July, potentially disrupting global oil supplies.
Meanwhile, attention is on the upcoming meeting of eight OPEC+ members on Sep. 7. Markets expect members to keep output unchanged after earlier increases, but remain cautious that any further hikes could trigger an oversupply.
By Firdevs Yuksel
Anadolu Agency
energy@aa.com.tr