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Today, the WTI crude oil was last seen trading for the September delivery, which was $ 69.29 per barrel below $ 0.71 (or 1.01%).
Last week, the 18th restriction package of the European Union imposed against Russia on 18 July imposed a import ban on all sophisticated products made of Russian crude oil generated from third countries.
Closed on the heels of the European Union restrictions, US President Donald Trump recently warned Russia to stop its war with Ukraine within 10–12 days (announced 50 days earlier) to implement 100% secondary tariffs on Russia’s business partners. China and India are primary sites for Russian oil exports.
This means what he said, yesterday Trump already imposed a “fine” on India for buying Russian oil over 25% tariffs on India. The country being the world’s third largest crude oil importer, its state refiners have stopped buying Russian crude oil this week and demanding supply from Middle East and West Africa.
The US has also warned China that if it continues its purchase from Russia, then wait for the same luck.
Recently, US EIA Data showed a stunning commercial raw inventory building of 7.7 million barrels for the week ended on 25 July. It brings total stockpiles to 426.7 million barrels.
In the same data, gasoline shares were shown falling from 2.7 million barrels that suggest healthy demand.
In his upcoming meeting in August, select members of OPEC+ Cartel are expected to increase the production of crude oil per day per day in September. This will complete their earlier employed 2.2 million BPD output growth.
While this can result in a break or inverter tight supply, the uncontrolled overproduction may reduce the driver’s prices.
On the monetary front, the US Federal Reserve meeting was concluded yesterday without any changes in interest rates. Fed Chair Zerome Powell also said that the Central Bank has “taken no decisions” about the rate cut in September “.
In the Middle East, the trussed signed between Israel and Iran still holds unevenly.
However, the red sea attack on two wholesale merchant ships by Yemen’s Houthi rebels resulted in their sinking and their recent warning that the attacks will continue on the ships that have commercial relations with Israel, bringing a new zero to investors. So far, the ships are ignoring the Red Sea and thus an increase in transportation costs and heavy insurance premiums.
Oil and energy traders are selected for a balanced approach amidst the stable role of OPEC+, compliance with members-nations and geopolitical provocative.
Analysts estimate that the situation will be clear by mid -August after the final tariff framework emerges.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
