Today, oil prices rose slightly as investors focused on events driven by US President Donald Trump's tougher ultimatum to Russia to end the war in Ukraine. This also happened against the backdrop of customs threats to countries trading Russian oil, writes UNN with reference to Reuters.
Details
The most active Brent crude oil futures rose by 40 cents, or approximately 0.6%, to $72.09 per barrel by 11:28 a.m. ET (15:28 GMT).
The price of US West Texas Intermediate oil rose by 76 cents to $69.97, with investors largely ignoring mixed data on US crude oil and fuel inventories.
The September Brent oil contract, which expires on Wednesday, rose by 37 cents to $72.88. Both contracts fell by almost 1% earlier the same day.
Donald Trump's statement
On Tuesday, Trump said he would begin implementing measures against Russia, such as 100% secondary tariffs for trading partners, if it does not make progress in ending the war in Ukraine within 10-12 days.
He imposed a 25% tariff on goods imported from India, starting August 1, as well as an unspecified penalty for buying Russian weapons and oil. The United States also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it continues to buy.
JP Morgan analysts wrote that while China is unlikely to comply with US sanctions, India has made it clear that it will, which could affect 2.3 million barrels per day (b/d) of Russian oil exports.
Traders seem to be more focused on tariffs (related to Russia), and India's compliance is seen as a positive factor for crude oil prices
Meanwhile, US crude oil inventories rose by 7.7 million barrels, the US Energy Information Administration reported, compared to analysts' expectations in a Reuters poll for a 1.3 million barrel draw.
US gasoline inventories fell by 2.7 million barrels compared to analysts' expectations in a Reuters poll for a 0.6 million barrel draw. Distillate stockpiles, including diesel and heating oil, rose by 3.6 million barrels compared to expectations for a 0.3 million barrel increase, EIA data showed.
Addition
US President Donald Trump assured Ukrainians who fled Russia's war against Ukraine, stating that he intends to allow them to stay in the US until the end of the war, which he told reporters.