Oil prices calmed down a little in Asian trading on Wednesday, after they rose by more than 3 percent in the previous session, with investors awaiting developments in the definition of US President Donald Trump, a tougher deadline for Russia, to end the war in Ukraine.
Brent crude futures rose 8 cents, or 0.12 percent, to $ 71.81 a barrel by 04:19 GMT, while West Texas Intermediate crude rose 8 cents, or 0.12 percent, to reach $ 69.29 a barrel.
The Brent crude contract for the month of September, which expires on Wednesday, rose 18 cents to $ 72.69 a barrel.
Both decades settled on Tuesday at their highest levels since June 20.
On Tuesday, Trump stated that he would start imposing procedures on Russia, such as imposing 100 percent secondary customs duties on its trading partners, if it is not made progress in ending the war within 10 to 12 days, with an increase in the previous deadline that was 50 days.
“It is expected that the risk of showing between 4 and 5 dollars per barrel will continue in recent days, unless Putin takes a reconciliation step,” said Vandana Harry, the Vandand Insights Foundation for the analysis of oil markets.
US Treasury Secretary Scott Besent told a press conference held in Stockholm; Where the United States is holding trade talks with the European Union, that the United States warned China, the largest buyer of Russian oil, that it may face huge customs duties if it continues to buy.
GB Morgan analysts said in a note that while China is unlikely to comply with US sanctions, India has indicated that it will do so, exposing 2.3 million barrels per day of Russian oil exports at risk.
The United States and the European Union have avoided a trade war with an agreement on the imposition of 15 percent American customs duties on European imports, eased concerns about the impact of trade tension on economic growth and support of oil prices.
In Venezuela, the foreign partners of the government oil company (PDVSA) are still awaiting a US permit to work in the sanctions country after last week’s talks, which may restore some supplies to the market, and reduce pressure on high prices.
Harry added: “The oil market is monitoring the American commercial deals and conversations, as well as (the Federal Reserve), but these effects on the morale are marginal.”
Despite Trump’s objections, it is expected that the Federal Reserve Council will keep the interest rates fixed in its meeting of economic policies later on Wednesday.
On Tuesday, the International Monetary Fund raised its expectations for global growth slightly for 2025 and 2026, but warned that the global economy is facing great risks, such as high customs rates, geopolitical tensions, and a greater financial deficit.
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