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Crude oil prices extended their decline for a fifth consecutive session on Wednesday, hitting eight-week lows, as markets weighed the growing risk of intensified US sanctions on Russian energy exports. The lack of progress heightened market anxiety over potential new sanctions on Moscow, the world’s second-largest oil producer, raising fresh concerns about global supply dynamics.

Brent crude slipped $0.75, or 1.1%, to close at $66.89 a barrel, 

WTI declined $0.81, or 1.2%, to settle at $64.35. 

Both benchmarks closed at their lowest levels since early June, with Brent at its weakest since June 10 and WTI notching its lowest close since June 5.

While US officials described “great progress” in the diplomatic talks, Washington simultaneously renewed threats of secondary sanctions should Moscow fail to offer meaningful concessions to end the war. The dual messaging injected fresh volatility into a market already grappling with competing narratives on global supply and demand.

Since the end of June, WTI futures have largely oscillated within a narrow $65–$70 range, with traders closely monitoring whether new US tariffs could dampen global oil consumption. In parallel, the administration’s pressure on India to reduce Russian crude imports has sparked speculation about potential shifts in the country's buying patterns, further complicating demand forecasts.

Adding to the bearish undertone, the market also contended with the anticipated increase in supply from the OPEC+ alliance, alongside broader geopolitical recalibrations that continue to unsettle risk sentiment.

Written: Farid Muzaffar