Oil Drops Even as US Raises Pressure on India Over Russian Crude
Oil edged lower as traders looked past US efforts to force India to quit buying Russian crude, and broader markets carried a risk-off tone.
West Texas Intermediate fell below $64 a barrel, while Brent closed above $68. White House trade adviser Peter Navarro stepped up the pressure on New Delhi to halt purchases of Russian energy after Washington doubled a levy on imports from the country to 50%. Calling Indians “arrogant,” he cast the conflict in Ukraine as “Modi’s war,” referencing the Indian prime minister.
Financial markets including stocks were softer in early trade on Thursday as results from chipmaker Nvidia Corp. struggled to clear elevated expectations.
Crude has swung between gains and losses this week, with futures on course for the biggest monthly loss since April. Traders are concerned the global oil market faces a surplus in the coming quarters after OPEC+ loosened supply curbs, while nations outside the alliance also ramped up output. The US-led trade war has also spurred worries that demand could face headwinds.
A US government report on Wednesday painted a mixed picture of the domestic oil market. While refinery runs were down in all regions, pulling the nationwide figure to the lowest since early July, crude stockpiles at the hub in Cushing, Oklahoma, fell for the first time in eight weeks.
Source: Bloomberg
