Oil prices have declined for the fourth consecutive session as Russia considers potential concessions to the United States, including a possible air truce with Ukraine. West Texas Intermediate crude fell 1.7 per cent, settling near $US65 a barrel, extending losses from the previous three sessions. According to Bloomberg, the Kremlin is evaluating options, such as pausing air strikes, to mitigate the impact of threatened secondary sanctions from the Trump administration.
Crude prices briefly rebounded from intraday lows following a Financial Times report that Trump is considering blacklisting Russia’s “shadow fleet” of oil tankers if a ceasefire agreement isn’t reached by Friday. These developments occur just days before the August 8 deadline for Russia to achieve a truce with Ukraine, with US Special Envoy Steve Witkoff scheduled to visit the region this week.
Joe DeLaura, global energy strategist at Rabobank, commented that Trump’s sanctions are “mostly noise,” suggesting that only a physical blockade would significantly impact a major oil producer like Russia, given its strong economic ties with India and China. Trump previously indicated he would raise tariffs on India, accusing the country of prolonging the conflict by purchasing Russian crude, a move New Delhi has criticised as unjustified.
Oil prices have fluctuated recently, initially rising to around $US70 before falling back, as traders assess the likelihood of Trump enacting his threats against Russian oil buyers. Crude prices have been supported in recent months by inventory buildups primarily concentrated in China, rather than near key pricing hubs.
