US Tariffs Biting, Will Oil Supply Continue?
The US officially imposed additional tariffs of up to 50% on many goods from India starting Wednesday (August 27th) at 12:01 a.m. Washington time. This policy is said to be a response to New Delhi's decision to continue purchasing Russian oil. Technically, Indian goods entering for consumption after that deadline are subject to additional duties on top of the existing tariffs.
Diplomatically, this move has strained US-India relations. The Indian government considers the immediate impact limited but acknowledges there will be ripple effects to the economy. On the ground, Indian refineries have not yet received instructions to reduce purchases of Russian oil, leading market participants to believe that supply flows will not be directly disrupted in the very short term.
Impact on oil prices: Initial market reactions tend to be measured. Brent remains in the $67-68 range and WTI at $63-64 per barrel, with a risk premium remaining due to the potential for further friction and rising oil rerouting costs. Sentiment was also influenced by the latest US data—moderate stock drawdowns and technology headlines—so that price movements were mostly confined to a narrow range. (ayu)
Source: Newsmaker.id
