Oil steadies as OPEC+ output hikes counter Russia disruption concerns
Oil was little changed on Tuesday as traders assessed rising OPEC+ supply and worries of weaker global demand, against U.S. President Donald Trump’s threats to India over its Russian oil purchases.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
Brent crude futures were down 26 cents, or 0.4%, to $68.50 a barrel at 0800 GMT, while U.S. West Texas Intermediate crude was down 7 cents at $66.22. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.
Trump on Monday again threatened higher tariffs on Indian goods over the country’s Russian oil purchases. New Delhi called his attack "unjustified" and vowed to protect its economic interests, deepening a trade rift between the two countries.
Oil’s limited move since then indicates that traders are sceptical a supply disruption will happen, said John Evans of oil broker PVM in a report.
He questioned whether Trump would risk higher oil prices, which "would be the inevitable outcome of penalising Russian energy customers".
India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.
Source: Reuters
