Oil Prices Drop as Traders Gauge Fed Turmoil and Russia Risks
Oil prices fell after four days of gains as investors awaited clearer signals on supply while monitoring the broader market impact of President Donald Trump's move to try to oust the Federal Reserve chairman.
Brent crude prices fell near $68 a barrel, though prices have largely held between $65 and $70 this month. Tuesday's decline in crude prices reflected broader risk-off sentiment in the market, as Trump seeks to oust Lisa Cook from the Fed.
The Department of Homeland Security issued a notice on Monday doubling tariffs on all Indian imports, as the US seeks to punish the country for purchasing Russian crude. The move—which will take effect on Wednesday—is seen as part of Trump's broader efforts to broker peace between Russia and Ukraine. However, refiners in the South Asian nation plan to maintain most of their purchases from Moscow in the coming weeks.
Crude oil traded within a narrow range for most of August, with traders assessing the impact of US levies, as well as the longer-term consequences of a series of massive supply increases from OPEC+. The International Energy Agency (IEA) warned earlier this month that the global oil market is on track for a record surplus next year as demand growth slows while supply increases, despite the market's strength over the summer.
"Oil prices remain within a tight range amid geopolitical volatility and relatively resilient fundamentals," Barclays analyst Amarpreet Singh said in a note. (alg)
Source: Bloomberg
