Oil Prices Stabilize After Drop, Markets Weigh Trump's Tariff Threat
World oil prices stabilized on Wednesday morning (August 6th) after declining for four consecutive days. Investors are now considering US President Donald Trump's threat to impose additional tariffs on countries buying oil from Russia, including the possibility of targeting China. Meanwhile, weak US economic data has also weighed on the energy demand outlook.
Brent oil is trading below $68 per barrel after falling nearly 8% in four sessions, while WTI is approaching $65 per barrel. Trump has also threatened to raise tariffs on imports from India in the near future. US special envoy Steve Witkoff is scheduled to visit Russia this week ahead of Trump's August 8th deadline for Moscow to agree to a ceasefire with Ukraine. The Kremlin is reportedly considering an air ceasefire option.
Pressure on oil prices also stems from OPEC+'s decision to increase production by another 547,000 barrels per day starting in September. This move has raised market concerns that global supply could exceed demand in the second half of the year, especially amid signs of a global economic slowdown.
Meanwhile, industry data showed a 4.2 million barrel decline in US crude oil inventories last week, but stocks at the key storage hub in Cushing, Oklahoma, actually rose. The price spread between Brent and the nearest contract showed a weakening pattern, although it remained bullish. As of 8:29 a.m. Singapore time, Brent was up 0.2% to $67.78 per barrel, and WTI was up 0.2% to $65.30 per barrel. (ayu)
Source: Newsmaker.id
