New york: Oil prices experienced their first monthly decline since April, driven by expectations of a supply surplus and traders’ focus on geopolitical developments, such as US efforts to halt the conflict in Ukraine. West Texas Intermediate crude for October delivery dropped 0.9%, settling near $64 a barrel, marking a 7.6% decline for the month.

According to National Iraqi News Agency, Brent crude also ended above $68, as oil lost momentum in August due to concerns that global supplies might surpass demand in the coming quarters, potentially leading to increased inventories. The decline in oil prices intensified further on Friday after US consumer confidence dropped to a three-month low, highlighting fears that tariffs could negatively impact the economy.

Investors have also been closely monitoring the situation in Ukraine and the potential for oil flow reversals from Russia. Throughout this year, oil prices have fallen by 11% amid concerns that Trump’s trade war could dampen energy consumption.

Trading volumes remained low on Friday ahead of the upcoming Labor Day holiday in the United States, which contributed to the heightened volatility in prices.