Oil prices stabilized on Thursday as investors assessed the risk of supply shortages amid US President Donald Trump's push for a swift resolution to the war in Ukraine by increasing tariffs, although an unexpected rise in US oil inventories put pressure on prices. UNN writes about this with reference to Reuters.
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Brent crude futures for September delivery, which expire on Thursday, fell 10 cents, or 0.1%, to $73.14 a barrel at 03:45 GMT (06:45 Kyiv time). The more active October Brent contract fell 14 cents, or 0.2%, to $72.33.
The price of US West Texas Intermediate crude for September delivery fell 5 cents, or 0.1%, to $69.95 a barrel.
Both benchmarks settled 1% higher on Wednesday.
"Oil contracts are stuck in a wait-and-see mode today, fluctuating in a narrow range, as neither buyers nor sellers have enough confidence to decisively raise or lower prices, especially ahead of the August 1 deadline" for new US tariffs, said Priyanka Sachdeva, senior market analyst at Phillip Nova.
"On the one hand, Trump's hawkish rhetoric on sanctions against Russia continues to support hard market premiums; on the other hand, a strong dollar, weak global growth indicators, and an unexpected rise in the EIA index limit growth," Sachdeva added.
Trump said he would begin implementing measures against Russia, including 100% secondary tariffs for trading partners, if it did not make progress in ending the war within 10-12 days, moving up the previous 50-day deadline.
"Fears that secondary tariffs for countries importing Russian oil will cut supplies continue to stimulate buyer interest," said Toshitaka Tazawa, an analyst at Fujitomi Securities.
The US also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it continued to buy.
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On Wednesday, the US Treasury Department announced new sanctions against more than 115 Iran-linked individuals, entities, and vessels, indicating that the Trump administration is doubling down on its "maximum pressure" campaign after the bombing of key Tehran nuclear facilities in June.
US imposes sanctions on Iran's "shadow fleet"31.07.25, 01:41 • [views_4104]
"US inventory data showed an unexpected increase in crude oil inventories, but a larger-than-expected decline in gasoline demand confirmed the view of strong demand in the driving season, leading to a neutral impact on the oil market," said Tazawa of Fujitomi Securities.