Oil Declines as Traders Gauge Fed Turmoil and Russia Risks
Oil dropped after a four-day gain as investors waited for clearer signals on supplies, while also tracking the wider market fallout from President Donald Trump’s move to try to oust a Federal Reserve governor.
Brent fell near $68 a barrel, though prices have been largely stuck in a range between $65 and $70 this month. Crude’s dip on Tuesday mirrored risk-off sentiment in wider markets, as Trump sought to remove the Fed’s Lisa Cook.
The Department of Homeland Security issued a notice on Monday to double tariffs on all Indian imports, as the US sought to penalize the country for buying Russian crude. The move — to take effect Wednesday — is billed as part of a broader effort by Trump to broker peace between Russia and Ukraine.
Still, refiners in the South Asian nation plan to maintain the bulk of their purchases from Moscow in the coming weeks.
Crude has traded in a narrow band for most of August, with traders assessing the impact of US levies, as well as the longer-term consequences of a series of major supply hikes from OPEC+. The International Energy Agency warned earlier this month that the global oil market was on track for a record surplus next year as demand growth slows while supplies swell, though markets have been firm over the summer.
“Oil prices remain in a tight range amid geopolitical volatility and relatively resilient fundamentals,” Barclays analyst Amarpreet Singh said in a note.
Brent for October settlement fell 1.1% to $68.07 a barrel by 10:27 a.m. in London. WTI for October delivery was 1.3% lower at $63.99 a barrel
Source : Bloomberg
