Oil prices experienced a downturn in volatile trading, influenced by OPEC+’s recent decision to increase supply and renewed threats from former US President Donald Trump regarding India’s purchase of Russian crude oil. West Texas Intermediate (WTI) crude fell by 1.5 per cent to settle near $US66 a barrel following Trump’s warning of potential levies on India for continuing to buy Russian oil. This fluctuation followed prices hitting a one-week low after OPEC+ endorsed an additional output of 547,000 barrels per day for the coming month.
Frank Monkam, head of macro trading at Buffalo Bayou Commodities, noted the uncertainty surrounding Russia’s position on a ceasefire with Ukraine. Trump’s renewed threat of tariffs on India for its Russian oil purchases has reintroduced market instability, reminding investors that the situation remains unresolved.
Despite the price drop, some market participants view the situation with cautious optimism. US Special Envoy Steve Witkoff is reportedly scheduled to visit Russia. Some investors, mindful of Trump’s history of threatening economic penalties only to later reverse course, believe that a potential agreement between Washington and Moscow could be reached before any significant penalties are implemented.
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