Oil prices fell on Friday due to weaker U.S. demand and increased supply from OPEC and allies. Brent crude settled at $68.12, down 0.73%, while WTI settled at $64.01, down 0.91%. OPEC+ output hikes are impacting prices, with a potential surplus despite strong U.S. demand during summer driving season.

The market shifts focus to next week’s OPEC+ meeting. Analysts anticipate a jump in supply and lackluster demand, affecting global oil prices. Tariffs imposed by the Trump administration on U.S. imports may impact economic outlook. Crude supply increases have yet to reach the U.S. market, possibly leading to a tighter supply-demand balance.

Despite concerns about demand, reports of Ukrainian attacks on Russian oil terminals boosted prices earlier. U.S. crude inventories showed higher-than-expected draws, indicating strong late-summer demand in industrial sectors. India faces pressure from the U.S. to stop buying Russian oil, but has defied the call, with exports set to rise in September.

Read more at Yahoo Finance: Oil prices fall with expected low demand, upcoming supply boost