Today’s rise has led to a two -day fall in oil prices.
For the September delivery, WTI crude oil was last seen trading at $ 1.32 (or 2.11%) to $ 63.97 per barrel.
US President Donald Trump and Russian President Vladimir Putin are set to meet in Alaska tomorrow to discuss the over three years of war between Russia and Ukraine.
Trump had served an ultimatum in Russia to prevent war or face serious sanctions in the first 10–12 days and also warned that the countries who buy oil from Russia would be more targeted. He even imposed 25% “penalty” tariffs on India, a major oil buyer from Russia.
In 2023, Russia’s crude petroleum exports were priced at $ 122 billion, with China ($ 60.7B) and India ($ 48.6B) as primary sites.
Although the deadline ended last Friday, Russia has been unaware of the US threat.
Yesterday, Trump warned Putin of serious consequences, if the war continues even after tomorrow’s summit. In addition, the US Treasury Secretary had said that if the meeting is not done well, India can be slapped with further tariffs.
In the US, the data of inflation and jobs released today has kept the expectations of rate cuts alive, although traders feel that the cut may not be as big as expected before.
With a dollar being a dollar-sect items of crude oil, the fed rate cut may affect the price of the dollar and resulting oil prices.
Wednesday’s monthly report by the International Energy Agency indicated that global crude runs will reach all high levels of 85.6 million barrels per day in August, with an annual increase of 1.6 million BPD in the third quarter.
The OPEC+ member nations have already agreed to increase the output for the month of September.
The demand for peak oil for the Northern Hemisphere is closing to reduce the diesel margin.
Traders feel that by the end of the year, the demand will slow down and the supply can increase in the oil market.
As things stand, tomorrow bilateral US-Russia meeting is considered very important for global oil trade as the result can send prices up or down.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
