Oil prices fell in Asian trading on Tuesday, giving back some of the previous session’s gains as traders balanced the potential for new U.S. sanctions on Russia with signs of progress toward ending the conflict in Ukraine.
As of 21:45 ET (01:45 GMT), Brent crude for October delivery dropped 0.5% to $68.46 per barrel, while West Texas Intermediate (WTI) crude declined 0.6% to $64.44 per barrel. Both benchmarks had climbed nearly 2% on Monday following Ukrainian drone strikes on Russian oil and gas infrastructure, which raised supply concerns.
Geopolitical Tensions Drive Market Sentiment
The Ukraine war remains the key factor influencing oil markets. U.S. President Donald Trump has sought to cast himself as a mediator, warning last week that he would impose fresh sanctions on Moscow if a peace deal is not reached within two weeks.
Vice President J.D. Vance noted that Russia had made “significant concessions,” including security guarantees for Ukraine, though Western diplomats cautioned that Moscow has yet to commit to a binding framework. Trump has proposed a trilateral summit with Ukrainian President Volodymyr Zelenskiy and Russian President Vladimir Putin, although no date has been confirmed.
The potential for a peace agreement has raised concerns about a global oil supply surplus, particularly if U.S. sanctions on Russian crude are eased as part of a deal. Nonetheless, prices remain supported as optimism over a possible Russia-Ukraine ceasefire has tempered, and additional U.S. restrictions on Russian oil could provide further support.
Trade Developments: U.S. Tariffs on India
On the trade front, the U.S. plans to impose an extra 25% tariff on Indian goods starting August 27, bringing the total tariff to 50%, in response to India’s increased purchases of Russian oil. Indian officials have expressed frustration over the measures, emphasizing the need to protect key national interests.
Some Indian oil processors have indicated they will continue importing Russian crude, suggesting that sustained demand could help support global oil prices.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply