Ad News Live
August 06, 2025
Oil Prices: Oil prices bounced back on Wednesday after hitting their lowest level in five weeks on Tuesday. The recovery came as traders reacted to two key developments.
First, U.S. President Donald Trump warned India about facing higher tariffs due to its continued imports of Russian crude. Second, data showed a bigger-than-expected drop in U.S. crude stockpiles, which added upward pressure on prices.
By 09:36 GMT, Brent crude rose 90 cents (1.3%) to $68.54 per barrel. At the same time, U.S. West Texas Intermediate (WTI) went up 92 cents (1.4%) to $66.08 per barrel.
On Tuesday, both major oil benchmarks slipped by over $1. They ended the day at their lowest levels in five weeks. This was the fourth consecutive session of losses.
Analyst Ashley Kelty from Panmure Liberum noted a shift on Wednesday. She said oil prices are climbing as markets watch how India and China respond to the risk of secondary sanctions.
“There’s talk that India could cut back on Russian oil imports,” Kelty explained. “But I don’t think they’ll stop entirely. They've been making huge profits by purchasing Russian crude at lower prices.”
Donald Trump, on Tuesday, once again raised the pressure on India by threatening higher tariffs over its ongoing imports of Russian oil.
This helped lift oil prices, as traders saw it adding fresh tension to global energy trade. Both India and China continue to be major buyers of Russian crude.
At the same time, U.S. envoy Steve Witkoff touched down in Moscow on Wednesday. His visit is being seen as a last-minute effort to find a breakthrough in the Ukraine war.
The clock is ticking, with just two days left before Trump’s deadline for Russia to accept a peace deal—or face new sanctions.
In a note released late Tuesday, analysts at Roth Capital Markets shared their take on the situation. They said the outlook for the Russia-Ukraine war remains uncertain.
But with the conflict ongoing and tariff threats growing, oil prices are likely to stay firm in the near future.
Until there’s a clearer picture of how these tariffs might impact global oil flows, prices could remain under support.
The analysts also added that they don’t expect major disruptions in Russian oil exports. In their view, China has the capacity to take in most of Russia’s crude on its own.
The oil market found some support from a drop in U.S. crude inventories last week. Sources, citing data from the American Petroleum Institute (API), reported on Tuesday that stockpiles fell by 4.2 million barrels.
That decline was much sharper than the 600,000-barrel draw expected in a Reuters survey for the week ending August 1.
UBS analyst Giovanni Staunovo said the API data gave prices a lift.
He added that any concerns about supply disruptions from the U.S.-India tensions were likely already priced into the market.
Follow Us
AD News Live
