Oil prices held steady on Wednesday after a sharp drop in the previous session, as investors closely monitored developments in the Ukraine war and the impact of new U.S. tariffs on India, the world’s third-largest crude consumer.
Brent crude futures slipped 9 cents to $67.13 a barrel by 06:33 GMT, while West Texas Intermediate (WTI) futures eased 8 cents to $63.17. Both benchmarks had fallen more than 2% on Tuesday, retreating from a two-week high at the start of the week.
Vandana Hari, founder of Vanda Insights, said the Ukraine conflict continues to drive volatility in oil, though prices remain in a relatively narrow range. “Much of the Ukraine peace discount has been reversed, but the market is not ready to price in a major supply risk premium,” she explained.
U.S. envoy Steve Witkoff confirmed he would meet Ukrainian officials in New York this week while also engaging with Russia in an effort to end the war.
Meanwhile, U.S. President Donald Trump’s decision to double tariffs on Indian goods to as much as 50% came into effect on Wednesday. Trump linked the move to India’s continued imports of discounted Russian oil after Moscow’s invasion of Ukraine.
Although Indian refiners initially cut purchases following U.S. tariff threats and tougher EU sanctions, state-owned Indian Oil and Bharat Petroleum have resumed Russian crude orders for September and October. Analysts say India has saved an estimated $17 billion since early 2022 by increasing Russian imports, but new tariffs could slash exports by over 40%, or nearly $37 billion, in the current fiscal year, according to the Global Trade Research Initiative.
The Ukraine war is also reshaping supply dynamics, with drone attacks on Russian refineries forcing them to boost crude exports. Russia has already raised its export plans from western ports by 200,000 barrels per day for August after the latest strikes, sources told Reuters.
