Oil Prices Hold Lower
Oil prices stabilized after a three-day decline as investors weighed risks to Russian supply, with US President Donald Trump escalating his threat to punish India for buying Moscow's crude.
Brent traded below $69 per barrel after falling more than 6% over the previous three sessions, while West Texas Intermediate neared $66. Trump said he would "substantially increase" tariffs on Indian exports to the US over the country's purchases of Russian oil as part of an effort to force Moscow to agree to a ceasefire in Ukraine. New Delhi condemned the move as unjustified.
Oil prices have been on a downward trend in recent sessions after three months of gains. The decline was driven by signs that the world's largest economy is slowing amid Trump's broader trade measures, which are hurting energy demand, as well as OPEC+ steps to ease supply curbs. Overall, this has fueled concerns that excess crude supply will halve the total supply, weighing on prices.
The US president's latest warning to India comes ahead of Russia's August 8 deadline to reach a ceasefire with Ukraine. US Special Envoy Steve Witkoff is expected to visit Moscow on Wednesday, Tass reported.
India emerged as the largest buyer of Russian crude oil exports by sea after Russia's invasion of Ukraine in early 2022, absorbing discounted barrels shunned by Western countries and increasing purchases from almost zero to about a third of imports. China is also a major buyer of Moscow's oil. Any disruption to India's purchases of Russian oil could force it to seek supplies elsewhere. Rystad Energy said in a recent note that other OPEC+ countries, particularly in the Middle East, are positioned to offset any potential shortfall. Over the weekend, the alliance agreed to increase production starting in September by around 547,000 barrels per day. Brent crude for October delivery was little changed at $68.75 per barrel at 8:33 a.m. Singapore time.
WTI crude for September delivery was steady at $66.27 per barrel. (ayu)
Source: Newsmaker.id
