Oil Steady With Focus on India-Russia Trade Before Tariff Boost
Oil was steady as the market weighed the outlook for Russian crude flows to India after a Trump administration official ramped up his criticism over the trade ahead of an expected tariff increase.
Brent held below $68 a barrel, on track for the biggest weekly gain since early July, while West Texas Intermediate was near $63. White House trade adviser Peter Navarro blasted India again for continuing to buy Russian oil and said he sees US import levies on the nation doubling as planned on Aug. 27.
“India doesn’t appear to want to recognize its role in the bloodshed,” he said. “They don’t need the oil. It’s a refining profit sharing scheme.”
President Donald Trump has threatened to raise the duties on Indian imports to the US to 50%, half of which would be due to purchases of Russian crude. Still, oil refiners in the South Asian nation have returned to buying after a brief pause, while an official from Moscow expects flows to be maintained.
Read More: China ‘Firmly Stands’ With India on Trump Tariffs, Envoy Says
Earlier this week, Navarro claimed that the surge in Russian imports since the war in Ukraine was driven by “profiteering by India’s Big Oil lobby” and not domestic needs. Oil is still lower for the year as OPEC+ ramps up production and Trump’s trade policies spark concerns over demand.
“The fundamental outlook for the market remains clearly bearish, with significant inventory builds from next quarter,” said Warren Patterson, the Singapore-based head of commodities strategy for ING Groep NV.
Source: Bloomberg
