WTI crude oil intraday gain expands to 1.00%, now at $64.33 per barrel; Brent crude oil currently up 0.8%, at $67.89 per barrel.

WTI crude oil intraday gain expands to 1.00%, now at $64.33 per barrel; Brent crude oil currently up 0.8%, at $67.89 per barrel.

Oil prices edged down on Tuesday, with Brent crude falling 32 cents, or 0.5%, to $68.48 per barrel at 0448 GMT, while West Texas Intermediate (WTI) crude also lost 33 cents, or 0.5%, to $64.47 per barrel [1]. The decline came after a nearly 2% surge in the previous session, driven by concerns over supply disruptions and geopolitical tensions, particularly in the Russia-Ukraine conflict.

The recent rally in oil prices was primarily fueled by worries about supply disruptions as Ukraine struck Russian energy infrastructure, and as traders anticipated more U.S. sanctions on Russian oil. The attacks disrupted Moscow’s oil processing and exports, created gasoline shortages in some parts of Russia, and came in response to Moscow’s advances on the front lines and its pounding of Ukraine’s gas and power facilities [1].

Barclays noted that oil prices remain in a tight range amid geopolitical volatility and relatively resilient fundamentals. Additionally, traders will be monitoring the impact of looming U.S. tariffs against India for its continued purchase of Russian oil. Indian exporters are bracing for disruptions after a U.S. Homeland Security notification confirmed Washington will impose an additional 25% tariff on all Indian-origin goods from Wednesday [1].

CLSA warned that crude oil prices could rise to $100 if India stops Russian imports. India currently imports 36% of its crude oil from Russia. The brokerage estimated that the net annual benefit to India from importing Russian crude is about $2.5 billion, which is equivalent to just 0.06% of India’s GDP. A disruption could strand 1% of global oil supply [2].

The U.S. President Donald Trump has renewed his threat to impose sanctions on Russia if there is no progress towards a peace deal in the next two weeks. Traders are also awaiting the U.S. inventory data from the American Petroleum Institute (API) later in the day, with expectations pointing to a fall in crude and gasoline stocks but a possible build in distillate inventories [1].

References:
[1] https://www.financialexpress.com/market/commodities-crude-oil-price-slips-after-2-week-high-on-russia-ukraine-supply-worries-3957716/
[2] https://economictimes.indiatimes.com/markets/commodities/news/crude-oil-prices-could-rise-to-100-if-india-stops-importing-from-russia-warns-clsa/articleshow/123563310.cms