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Today, WTI crude oil was last seen trading, up to $ 0.03 (or 0.05%), up to $ 63.91 per barrel.
A few days ago, US President Trump released an ultimatum to Russia (with a time limit that ends today) to find ways to end their war with Ukraine or find ways to face too much tariffs on their oil exports. He also threatened that Russian oil buyers would also be imposed as “secondary restrictions” as “punishment” tariffs if they continue to buy from Russia.
Trump later imposed an additional 25% tariff on India, a large buyer of dandruff, which is bringing the country’s tariff liability to 50% at the top of the already imposed 25% tariff.
As a result, Russia’s seborn oil shipments in India fell to just 460,000 barrels per day last week.
Earlier, it gives rise to some supply side concerns, which helps in oil prices. However, after an American messenger for Russia yesterday it was said that the conversation to end the deadlock was progressing well, oil prices stabilized.
In addition, the Russian government said that the Presidents of America and Russia will meet soon. A US White House official said that the meeting could be held anytime in the beginning of next week.
As optimism was strengthened on the important talks of the US-Russia, the concerns of the supply side have been reduced.
Nevertheless, American restrictions on India are in force. China, another big oil importer from Russia – as Trump indicated – can also be slapped with additional tariffs in the coming days.
Meanwhile, the OPEC+ alliance that targets to stabilize the markets by slowly restoring production by targeting 5,48,000 BPD growth in August to reinstate the global oil markets, raised 270,000 barrels per day from 270,000 barrels to 270,000 barrels in July, led by Saudi Arabia and UAE.
OPEC +’s July growth is part of a comprehensive plan by Cartel to open a voluntary production cuts applicable from April.
The idea and opinion expressed here are the idea and opinion of the author and not necessarily Nasdac, Inc.
