Benchmark Brent crude prices rose 1.4% to $68.57 per barrel at 4.59 a.m. ET, while U.S. West Texas Intermediate crude prices gained over $1 to $66.20 per barrel.
Oil prices gained on Wednesday in early trading, on course to snap a four-day losing streak, as U.S. President Donald Trump’s continued threats to India to stop buying Russian oil raised concerns over supplies.
Trump gave India an ultimatum to stop buying Russian oil within 24 hours or promised to raise tariffs on Asia’s third-largest economy from the present levies of 25%. “They are buying Russian oil and fueling the Russian war machine,” Trump said to reporters.
Benchmark Brent crude prices rose 1.4% to $68.57 per barrel at 4.59 a.m. ET, while U.S. West Texas Intermediate crude prices gained over $1 to $66.20 per barrel. Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘neutral’ territory at the time of writing.
Bob McNally, the President of Rapidan Energy Group, said earlier to CNBC that Trump’s threats may affect a meaningful portion of Russia’s exports and push Brent prices above $80 per barrel, similar to the beginning of the year when prices had gained after former President Joe Biden tightened sanctions.
India, the world’s third-largest crude importer, has been the biggest destination for Russian seaborne crude this year. In the fiscal year ending on March 31, India imported goods from Russia worth $64 billion, the bulk of which was oil.
India has said that it has been ‘unfairly targeted’ and pointed to the trade between Russia and Western powers, including the EU and the U.S.
However, an output hike from OPEC+ countries has continued to put oil prices under pressure. would increase September production by 547,000 barrels per day (bpd) compared to August, the latest in a series of output hikes as they attempt to regain market share.
Investors will also be closely watching the U.S. Energy Information Administration’s oil inventory data, scheduled for release on Wednesday.
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