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Oil Prices Slide as U.S. Fuel Demand Weakens
28 Aug
Summary
- U.S. crude inventories fell, signaling strong demand
- India faces higher U.S. tariffs for importing Russian oil
- Russia and Ukraine escalate attacks on energy infrastructure
As of August 28th, 2025, oil prices have fallen as investors assess the outlook for U.S. fuel demand and potential supply shifts. Brent crude futures dropped 31 cents, or 0.46%, to $67.74, while West Texas Intermediate (WTI) crude futures fell 36 cents, or 0.56%, to $63.79.
The U.S. Energy Information Administration reported last week that U.S. crude inventories declined by 2.4 million barrels, signaling strong demand ahead of the upcoming Labor Day weekend. However, this typically marks the unofficial end of the summer driving season, leading to lower U.S. demand.
Traders are also closely watching how India responds to pressure from Washington to stop buying Russian oil. Last month, the U.S. doubled tariffs on imports from India to as much as 50%. Despite the new tariffs, India is expected to continue purchasing crude oil from Russia at least in the short term.
Underpinning oil price gains this week, Russia and Ukraine have stepped up attacks on each other's energy infrastructure. Russia launched a massive drone attack on energy and gas transport infrastructure across Ukraine, leaving more than 100,000 people without power.
