Oil Prices Restrain from Tariff Pressure
Oil prices held steady after plunging more than 2% as investors weighed the impact of higher US tariffs on India related to Russian oil imports. Brent was near $67/barrel, while WTI was above $63. The US has officially imposed 50% tariffs on some of India's highest-priced goods for Asian countries, but local Indian refiners are said to be maintaining most of their purchases.
According to Vandana Hari (Vanda Insights), supply risks are not yet significant: there has been no directive from the Indian government to halt Russian oil imports, so there is little reason for refiners to unilaterally reduce them. So far this year, Brent has fallen about 10% due to demand concerns amid the trade war and the lifting of OPEC+ supply curbs. The IEA even forecasts a record surplus next year. President Donald Trump praised prices approaching $60 and said oil could soon fall further. The US action against India—without similar action against China, another major buyer of Russian oil—is part of a diplomatic effort to end the war in Ukraine. Trump warned of the potential for "economic war" if there is no progress between Putin and Zelenskiy. India has been a major buyer of Russian oil since 2022; for October delivery and beyond, purchases are expected to reach 1.4–1.6 million barrels per day, compared with an average of 1.8 million barrels per day in the first half of this year.
In the US, industry reports showed national crude inventories fell by 1 million barrels last week, in line with gasoline and distillate drawdowns. Market structure indicators are also mixed: the spread between the two nearest Brent contracts remains in backwardation (short-term tightness), while the longer-term contract is in contango, indicating expectations of tighter supply going forward. Brent for October settlement was little changed at $67.26 per barrel at 12:40 p.m. in Singapore. WTI for October delivery was steady at $63.30 per barrel. (ayu)
Source: Newsmaker.id
