Oil slips amid global growth fears triggered by fresh U.S. tariff

August 08, 2025 (MLN): Oil prices held steady during early Asian trading on Friday but remained on track for their sharpest weekly decline since late June, as newly imposed tariffs on Thursday raised investor concerns about potential damage to the global economy.

Brent crude futures decreased by $0.34 or 0.51%, to $66.77 per barrel.

West Texas Intermediate (WTI) crude futures fall by $0.30, or 0.47%, to $64.18 per barrel by [3:05 pm] PST.

U.S. tariffs targeting several trade partners came into force on Thursday, fueling fears of a slowdown in economic activity and reduced crude demand according to a note from ANZ Bank analysts.

Oil prices were already under pressure following OPEC+’s decision last weekend to completely phase out its largest production cuts by September months earlier than previously planned.

By Thursday’s close WTI futures had declined for six straight sessions matching the losing streak last seen in December 2023. A further drop on Friday would mark the longest decline since August 2021.

Further weighing on the oil market, the Kremlin confirmed on Thursday that Russian President Vladimir Putin would soon meet U.S. President Donald Trump, raising hopes for a diplomatic resolution to the Ukraine conflict.

Meanwhile, new U.S. tariffs imposed on India over its purchases of Russian crude helped soften the fall in oil prices. However, analysts at StoneX noted on Thursday that the move is unlikely to significantly disrupt Russian oil exports to global markets.

Trump also stated on Wednesday that China Russia’s biggest crude buyer could face similar tariffs to those applied to Indian imports.

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