Oil fluctuates between demand concerns and geopolitical risks.. And marginal weekly gains

Geopolitical support and fundamental pressures

Oil prices fell during the Asian trading period, but they are still on track for minor weekly gains so far, as traders balance concerns of weak demand with the approach of autumn and the risk of Russian supply disruptions.

Brent and WTI fell by 0.6% to USD 67.57 and USD 64.19 per barrel, respectively. After settling at a height in the previous session, supported by Ukraine's attacks on Russian energy infrastructure, and the statement of German Chancellor Friedrich Merz, that direct talks between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky will not take place.

The lack of progress towards a peace agreement means that the risks of sanctions and secondary tariffs continue to hang over the oil market.

However, growing fears of an impending supply glut later this year are overshadowing market expectations, limiting price gains despite a high geopolitical risk premium.