Oil markets saw a modest uptick during Wednesday’s Asian trading hours, clawing back slightly after hitting a five-week low in the previous session. The prospect of enhanced U.S. sanctions against countries purchasing Russian crude lent some support to prices.
Yet, the rally showed signs of fragility amid ongoing concerns over increased OPEC+ output and a sluggish global demand outlook.
By 21:50 ET (01:50 GMT), October Brent futures had inched up 0.5% to $68.00 per barrel, while West Texas Intermediate (WTI) crude rose 0.5% to $64.53 per barrel.
Supporting the bounce, data from the American Petroleum Institute (API) indicated a much larger-than-anticipated decline in U.S. oil stocks last week—a drop of 4.2 million barrels compared with expectations of 1.8 million.
Trump Targets India with New Tariff Threats Over Russian Oil Purchases
On Tuesday, U.S. President Donald Trump intensified pressure on India, threatening to impose additional tariffs due to the country’s continued purchases of Russian crude. This follows the 25% reciprocal tariffs slapped on India last week.
Trump criticized India’s ongoing importation of Russian oil, stating it helps finance Russia’s military operations in Ukraine. However, India has rejected these claims and is expected to continue importing Russian oil in the near future, relying on imports for roughly 80% of its oil consumption.
Trump also warned of possible tariff increases against China, another major buyer of Russian crude.
Should these large importers curtail Russian oil purchases, global supply could tighten, providing some upward momentum to oil prices.
Meanwhile, reports suggest possible moves by Moscow to ease tensions, including a pause on air strikes, in hopes of avoiding harsher U.S. sanctions. U.S. Special Envoy Steve Witkoff is also slated to visit Moscow this week to discuss the crisis.
Oil Struggles Amid Oversupply and Demand Uncertainty
Despite Wednesday’s gains, oil prices have suffered steep losses recently.
The downturn follows OPEC+’s announcement to boost output by 547,000 barrels per day starting September.
This increase adds to fears that the global oil market will face excess supply in the second half of 2025.
Additionally, a series of disappointing economic reports from the U.S. and China have raised concerns over weaker growth and demand from two of the world’s largest oil consumers.
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