Oil Weakens Ahead of India Tariffs
Oil prices held steady after their sharpest drop since early August, as investors counted down to higher U.S. tariffs on India for its purchases of Russian crude. WTI traded above $63/barrel after plunging more than 2% in the previous session, while Brent closed above $67. Early Asian trading on August 27th, the U.S. will double tariffs on some Indian goods to 50% to punish the country for importing Russian oil. Although the new duties take effect at 12:01 a.m. Washington time, local Indian refiners still plan to maintain most of their purchases.
Washington's move which has not taken similar action against China, another major buyer of Russian oil is part of a broader push to try to end the war in Ukraine. On Tuesday, President Donald Trump warned of the possibility of an "economic war" if he cannot get Vladimir Putin and Volodymyr Zelenskiy to end the conflict. Oil prices have fallen more than 10% this year as the U.S.-led trade war fuels demand concerns, while OPEC+ rapidly lifts supply curbs. The IEA even predicted a record surplus next year. Trump praised prices approaching $60/barrel, adding that oil would likely “break through that level in the near future.”
In the US, an industry report showed national crude oil inventories fell slightly by 1 million barrels last week, in line with declines in gasoline and distillate. Official data will be released later Wednesday. The October WTI contract rose 0.3% to $63.45/barrel at 7:22 a.m. Singapore time. October Brent closed down 2.3% at $67.22/barrel on Tuesday. (ayu)
Source: Newsmaker.id
