Brent drops over $4 in August after three-month rally
ISTANBUL
Brent crude lost more than $4 in August, halting a three-month rally as the U.S. moved to raise tariffs on India and fuel demand showed signs of slowing with the end of the summer driving season.
The global demand outlook brightened in May after President Donald Trump extended the deadline for reciprocal tariffs on the EU, which contributed to Brent finishing the month at $62.60 a barrel, up 2.6 percent from April.
In June, Trump's announcement of a trade deal with China spurred consumption from the world's top oil buyer, sending Brent up 6.2 percent to $66.46.
Prices gained further in July, climbing 7.9 percent to $71.71 as Washington imposed new sanctions on oil shipments from Iran and Russia, intensifying supply concerns.
However, that trend reversed in August, when the U.S. doubled tariffs on Indian goods to 50 percent and expectations for weaker consumption took hold. Brent settled the month at $67.37 a barrel, a 6 percent drop from July, erasing about $4.34 in value.
As the final quarter of the year approaches, expectations of a supply glut are weighing on crude prices, Kate Dourian, a non-resident fellow at the Arab Gulf States Institute in Washington, told Anadolu Agency.
"Prices have remained somewhat stable despite increases in OPEC+ production, as the voluntary cuts were unwound a year ahead of schedule," Dourian said.
"If a supply glut emerges in the last few months of the year, we could see weaker prices. Much will depend on whether demand is robust enough to keep the market in balance," she added.
