TOKYO: Oil prices bounced back on Wednesday following a sharp dip, as market participants weighed potential supply disruptions triggered by U.S. President Donald Trump’s fresh threats of tariffs on India for its continued imports of Russian crude.
Brent crude futures rose 29 cents, or 0.4%, to \$67.93 per barrel by 0119 GMT, while U.S. West Texas Intermediate (WTI) gained 28 cents, or 0.4%, reaching \$65.44 a barrel. Both benchmarks had plunged more than \$1 on Tuesday to hit their lowest levels in five weeks amid concerns of oversupply following OPEC+’s decision to raise output in September.
“Investors are now evaluating whether India will curtail Russian crude purchases in response to Trump’s threats, which could tighten global supply,” said Yuki Takashima, economist at Nomura Securities. However, he noted that if Indian imports remain unchanged, WTI is expected to stay within the \$60–\$70 range through August.
OPEC+, which collectively produces around half of the world’s oil, recently agreed to raise output by 547,000 barrels per day starting in September, effectively ending its latest round of production cuts earlier than scheduled. This move is part of the bloc’s broader strategy to reclaim market share.
Meanwhile, rising geopolitical tensions are further complicating the market outlook. Trump’s ultimatum to India—threatening increased tariffs within 24 hours over Russian oil imports—has heightened fears of disrupted trade flows. India strongly rejected the warning, calling it “unjustified” and pledging to defend its economic interests, signaling a deepening trade rift with Washington.
Supporting prices further, U.S. crude inventories fell by 4.2 million barrels last week, according to industry data from the American Petroleum Institute—well above expectations of a 600,000-barrel draw. Official data from the U.S. Energy Information Administration is due later Wednesday.
Story by Reuters
