Trump Gives Russia 50 Days, Oil Prices Immediately Weaken
World oil prices fell on Tuesday (GMT) after United States President Donald Trump gave Russia a 50-day deadline to end the war in Ukraine. This move eased market concerns about potential oil supply disruptions. Brent crude fell 56 cents (0.8%) to $68.65 per barrel, while US West Texas Intermediate (WTI) crude fell 62 cents (0.9%) to $66.36.
Previously, the market had risen due to concerns that Trump would soon impose tough sanctions on Russia. However, the deadline has made investors think that sanctions might still be averted. "The focus is on Trump, and fears about a tight oil market have now eased somewhat," said Giovanni Staunovo, an analyst at UBS.
However, analysts at ING warned that if Trump actually implements sanctions, the impact could be significant for the oil market. Countries like China, India, and Turkey—which are major buyers of Russian oil—have had to reconsider their moves due to the risk of losing access to exports to the US.
Another factor weighing on oil prices is weak Chinese economic data. Economic growth in the country slowed in the second quarter, with declining exports and low consumer confidence. Analyst Tony Sycamore of IG said this could have a direct impact on demand for commodities like oil. However, OPEC stated that global oil demand remained high through the third quarter, maintaining market balance in the near term.
Source: (ayu-newsmaker)
