Oil prices extended their gains, climbing above $US69 a barrel, following President Donald Trump’s renewed threat of additional tariffs on Russia. Trump indicated that the US could impose these tariffs if Russia fails to broker a truce with Ukraine within a 10-day period. The President’s remarks were made while speaking to reporters aboard Air Force One on Tuesday (Wednesday AEST), raising concerns about potential secondary sanctions if the ceasefire deadline is not met.
West Texas Intermediate (WTI) crude experienced its most significant surge since June, coinciding with Israeli airstrikes on Iran. Notably, bullish options on the Brent Crude benchmark are now commanding a premium over bearish options for the first time in two weeks, signalling a shift in market sentiment. This development suggests increasing confidence in potential price increases among traders.
“The new deadline caught many analysts by surprise and, if enforced, could tighten Russian crude and fuel supplies to the global market,” commented Dennis Kissler, senior vice president for trading at BOK Financial Securities. The market is closely watching developments surrounding potential supply disruptions.
Adding to the global market dynamics, the European Union has recently implemented a fresh round of sanctions targeting Russia. These measures include penalties against India’s Nayara Energy, which has subsequently reduced processing rates at one of its refineries. Investors are also closely monitoring the US deadline of August 1 for securing trade deals and the upcoming OPEC+ meeting, where supply policies for September will be determined.
