Oil prices have remained relatively stable as traders await new developments that could push prices beyond their current range. Brent crude is trading near $US69 a barrel, following a 1 per cent increase in the previous session, while West Texas Intermediate is hovering around $US65. Market attention is focused on the upcoming OPEC+ meeting this weekend, where members will decide on the output for October. Most analysts anticipate the group will maintain its current supply levels.
Russian oil flows are also under scrutiny as the United States attempts to pressure Moscow to pursue peace in Ukraine by targeting India, a major importer of Russian crude. However, New Delhi has reportedly rejected this initiative, highlighted by a recent meeting between Prime Minister Narendra Modi and President Vladimir Putin. US Treasury Secretary Scott Bessent indicated that Washington may consider sanctions this week, adding further uncertainty to the market.
The global crude benchmark, Brent, has largely remained between $US65 and $US70 a barrel in recent weeks, reflecting an overall decrease of about 8 per cent this year. Concerns persist regarding a potential surplus as OPEC+ has previously opted to ease supply curbs to regain market share. Moreover, the US-led trade tensions pose a risk to energy demand. Vandana Hari, founder of Vanda Insights, suggests that crude oil prices are likely to stay within their current range, as Ukrainian attacks on Russian oil facilities provide price support while the likelihood of stricter US sanctions has diminished.
Adding to the complexity, US President Donald Trump stated that New Delhi had offered to reduce its tariff rates to zero following the US imposition of 50 per cent levies on Russian oil purchases. However, the timing and specifics of this offer remain unclear, leaving uncertainty about potential future discussions between the two nations. The US leader is expected to make an announcement later today, although the subject of his address is not yet known.
