Crude oil prices have climbed to their highest level since June following a threat by former U.S. President Donald Trump to impose a 25 per cent tariff, “plus a penalty,” on Indian imports of Russian oil. This move has stoked concerns about potential tightness in global oil supplies. Trump criticised India for being among the largest purchasers of Russian energy, prompting a reaction from Nayara Energy, which has already curtailed processing rates at one of its refineries. ANZ noted that this development amplified fears of further disruption to refined product markets, consequently lending support to oil prices.
Further bolstering oil prices were robust U.S. economic indicators, with inflation-adjusted GDP increasing by 3 per cent in the June quarter. This data, combined with general optimism regarding demand resilience, contributed to the upward pressure on prices. However, these gains were partially offset by the latest inventory report from the Energy Information Administration (EIA), which revealed a substantial 7.7 million barrel increase in crude stockpiles – marking the largest weekly build since January.
Brent Crude Oil saw a notable increase of 1.4 per cent, reaching $US73.37 a barrel. In related energy markets, global gas prices experienced a slight uptick, influenced by the rise in oil prices and new supply concerns stemming from power issues at the Freeport LNG terminal.
Nayara Energy is an Indian downstream oil company with a chain of fuel retail outlets. The company also owns and operates India’s second-largest single-site refinery at Vadinar, Gujarat.
