Oil slips as Trump's 50-day deadline for Russia eases supply fears
Oil prices dropped by less than 1% on Tuesday after U.S. President Donald Trump's 50-day deadline for Russia to end the war in Ukraine and avoid sanctions eased concerns about any immediate supply disruption.
Brent crude futures settled down 50 cents, or 0.7%, at $68.71 a barrel. U.S. West Texas Intermediate crude futures were down 46 cents, or 0.7%, at $66.52.
"The focus has been on Donald Trump. There was some fear he might target Russia with sanctions immediately and now he has given another 50 days," said UBS commodities analyst Giovanni Staunovo. "Those fears about an imminent additional tightness in the market have dissipated. That's the main story.
Oil prices had climbed on the potential sanctions but later gave up gains as the 50-day deadline raised hopes that sanctions could be avoided.
In the event the proposed sanctions are implemented, "it would drastically change the outlook for the oil market," analysts at ING said in a note.
"China, India and Turkey are the largest buyers of Russian crude oil. They would need to weigh the benefits of buying discounted Russian crude oil against the cost of their exports to the U.S.," ING said.
Trump announced new weapons for Ukraine on Monday and had said on Saturday that he would impose a 30% tariff on most imports from the European Union and Mexico from August 1, adding to similar warnings for other countries.
Source: Reuters
