Oil Steadies as Traders Weigh Geopolitical Risks, OPEC+ Policy
Oil steadied after closing at the highest in a month as investors weighed a host of geopolitical risks, including a potential escalation of US sanctions on Russian flows, in the run-up to an OPEC+ meeting on supply.
West Texas Intermediate was little changed below $66 a barrel, while global benchmark Brent settled above $69. President Donald Trump said he was watching closely to see how Russian President Vladimir Putin addressed efforts to set up a meeting with his Ukrainian counterpart, and signaled he was considering additional measures if talks did not progress.
At the same time, the US president said he was not looking at lowering tariffs on India, one week after Washington doubled levies on most of the country’s imports to 50% as punishment for its buying of Russian oil. That move — which hasn’t been matched by similar action against China, another major buyer — is part of a wider bid to force Moscow to end hostilities in Ukraine.
Crude has gained ground in early September after slumping last month amid concerns that the global market was destined for a surplus, with OPEC+ loosening supply curbs. The alliance, which includes Russia, is due to meet this weekend, and most analysts and traders expect that the group will stand pat on production for October, pausing a long run of increases.
In addition to the backdrop of US tariffs, oil traders were also tracking the impact of Ukrainian strikes against Russia’s energy infrastructure, including refineries. South America was also in focus, with the US deploying warships off Venezuela in an apparent anti-drug trafficking campaign. Venezuelan President Nicolás Maduro said the US efforts were meant to seize the country’s crude.
Source: Bloomberg
