International oil prices fell on Friday as traders anticipated weakening demand from the United States, the world's largest oil market, while potential behind-the-scenes efforts to reach a Ukraine ceasefire agreement added pressure.

Brent crude contracts dropped 50 cents, or 0.73%, to close at $68.12 per barrel. New York Mercantile Exchange October delivery West Texas Intermediate (WTI) crude contracts fell 59 cents, or 0.91%, to close at $64.01 per barrel.

Tamas Varga, analyst at PVM Oil Associates, noted that market focus is partially shifting toward next week's Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting.

Crude production has increased as OPEC+ accelerates output increases to regain market share, improving supply prospects and suppressing global oil prices.

Phil Flynn, senior analyst at Price Futures Group, stated that increased production from OPEC+ countries has not yet impacted the US market, but the end of America's summer driving season has raised concerns about declining demand.

"I really can't agree with the pessimistic sentiment about demand," Flynn said. "OPEC's supply should be increasing, but we're not seeing that in the US. I believe supply tensions will persist."

Flynn noted that prices rose earlier this week due to Ukrainian attacks on Russian oil export terminals, but reports that Ukraine's European allies are discussing a possible ceasefire helped contain oil prices.

SEB Bank analyst Ole Hvarboe noted in a report that US crude inventories fell more than expected for the week ending August 22, indicating robust late-summer demand, particularly in industrial and freight-related sectors.

Commonwealth Bank of Australia commodities analyst Vivek Dhar predicted in a report that Brent crude contracts will fall to $63 per barrel in the fourth quarter of 2025.

Investors are also watching India's response to US pressure to stop purchasing Russian oil. US President Trump doubled tariffs on Indian imports to 50% on Wednesday.

Traders indicated that India has not yielded to US pressure so far, with Russian oil exports to India expected to increase in September.

"The general view is that Russian sanctions will not be implemented soon, and India will ignore US sanction threats and continue purchasing Russian crude at significant discounts," said PVM's Varga.