Crude oil futures remained under pressure and declined for a second day in a row.
Early gains spurred by fears of sanctions on Russian oil faded after US President Trump took a milder stance on Russia.
Trump announced a 50-day deadline for Moscow to end its involvement in Ukraine, tempering immediate concerns over supply disruptions.
At the same time, tariffs targeting imports from the European Union and Mexico as well as other countries, have reinforced uncertainty around economic growth, clouding demand prospects and keeping prices subdued.
On the supply front, OPEC+ continued to ramp up production, effectively unwinding much of the voluntary cuts implemented since 2023. The increase in production could continue to drive oil prices to the downside, although the organisation could pause its increases after September, reducing pressure on the market.
However, the market could find some support if refinery activity and oil imports for strategic crude stockpiling remain elevated in China. If US sanctions on Russian crude take effect, the market could face weaker supply, potentially driving prices higher.