Oil Steady, Trump's Tariff Threats on India in Focus
Crude oil prices held steady on Tuesday morning after declining for three consecutive days. Investors are now weighing potential supply disruptions from Russia, as US President Donald Trump threatened to raise tariffs on Indian exports to the US. The threat was a response to India's decision to purchase crude oil from Russia, which is seen as supporting Moscow's war machine. New Delhi immediately condemned the move as unfair.
Brent oil traded below $69 per barrel, while WTI approached $66. Price pressure in recent sessions has been driven by signs of a US economic slowdown and the easing of supply cuts by OPEC+, which has fueled concerns about oversupply in the second half of the year.
While market fundamentals point to bearish trends, ING analysts said potential secondary sanctions against Russian oil buyers, such as India and China, could pose a significant risk to the market. India has been the largest buyer of Russian oil since the start of the Ukraine invasion, importing about a third of its total oil needs from Moscow.
If the tariff threats are carried out, India will likely have to seek alternative sources of supply. Rystad Energy estimates that OPEC+ countries in the Middle East are ready to cover any potential shortfall. Meanwhile, OPEC+ has also agreed to increase production by 547,000 barrels per day starting in September. (ayu)
Source: Newsmaker.id
