Oil is getting cheaper amid Trump's threat of sanctions against Russia
Kyiv • UNN
The market is reacting to Trump's ambiguous statements regarding possible sanctions against Russian oil. Brent price fell to $72 a barrel after his words.
Oil prices are falling as the market weighs ambiguous statements by US President Donald Trump regarding the threat of new sanctions on Russian oil if Russian dictator Vladimir Putin refuses to cease fire with Ukraine, Bloomberg reports, UNN writes.
Details
Trump told reporters on Air Force One that he doesn't think Putin "will give up his word", which perhaps softened his criticism earlier on Sunday when NBC News reported that he was "very angry" with the Russian president and would consider a "secondary duty".
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The June Brent crude contract fell to $72 a barrel after a slight increase at the opening, while West Texas Intermediate was around $69. Trump's threat precedes so-called reciprocal US duties this week for other countries, which could lead to tougher retaliation and additional market volatility.
Russia is one of the three largest oil producers in the world, which means that any concerted attempt to punish Putin could have far-reaching consequences for the wider crude oil market. India and China, which have become key buyers since Moscow's full-scale invasion of Ukraine, will face particular pressure, the publication writes.
Whether the duties will be "just tough talk or actually implemented remains to be seen," said Gao Jian, an analyst at Qisheng Futures Co. "But oil trading in Russia is large-scale, it must assess and weigh all the pros and cons," he noted.
The OPEC+ producer's crude oil exports reached a five-month high in March, and US sanctions on the country's oil tanker fleet are showing signs of faltering, the publication notes.
Addition
Brent crude futures are on track for a slight monthly gain after other US duties and sanctions raised concerns about possible disruptions to crude oil supplies, although, as the publication writes, major traders remain bearish for the remainder of the year due to increased supplies. OPEC+ should start reviving production next month.
