Trump Advised India to cut down on its imports of Russian oil and gave Russia till last Friday to pledge to peace in Ukraine or face additional penalties.
Tariff Pause Boosts Oil
On Tuesday, oil prices rose after the United States and China extended their pause on additional tariffs, Due to concerns that escalating their trade dispute could harm their economies and reduce fuel demand in the world’s two biggest oil-consuming nations.
WTI Crude (U.S. West Texas Intermediate): Up by $0.22 (+0.34%) to $64.18 per barrel
Brent Crude Futures: Up $0.26 (+0.39%) to $66.89
Crude Oil Prices
| Oil Type | Price (USD/Barrel) | Change | % Change |
|---|---|---|---|
| WTI (U.S. West Texas Intermediate) | $64.18 | +$0.22 | +0.34% |
| Brent Crude | $66.89 | +$0.26 | +0.39% |
Ninety-Day Tariff Extension
In order to prevent triple-digit tariffs on Chinese products as American merchants get ready for the crucial end-of-year Christmas season, On Monday, President Donald Trump of the United States announced that he has extended a tariff-peace deal with China by an extra 90 days.
Also Read: Govt Backs 5-Year Extension of Inflation Targeting Framework
This made many hopeful that the two biggest economies in the world might reach a deal and avoid a virtual trade embargo. Tariffs run the danger of reducing economic development, which may reduce demand for fuel worldwide and drive down oil prices.
Putin-Trump Talks on Ukraine
Investors are also looking forward to Trump’s meeting with Russian President Vladimir Putin in Alaska on August 15 to talk about a resolution to the Ukrainian crisis.
Upcoming Market Watch
| Date | Event | Market Impact |
|---|---|---|
| Aug 15 | Trump-Putin Summit in Alaska | Could influence Russian oil sanctions & trade flows |
| Later Today | U.S. Federal Reserve Inflation Data | Possible impact on interest rates & oil demand |
| Next 90 Days | U.S.-China Tariff | May stabilize oil prices if negotiations progress |
With the prospect of more severe sanctions on Russian oil consumers like China and India in the event that no peace agreement is achieved, The conference is taking place as the United States is putting more pressure on Russia, which might cause delays in the supply of oil.
Ukraine Peace Talks Impact
A study by Daniel Hynes, senior commodities analyst at ANZ, suggests that a peace agreement between Russia and Ukraine could end the ongoing risk of interruptions in Russian oil supply to global markets.
The possibility of such penalties being applied has reduced ahead of the August 15 Trump-Putin summit.
Later in the day, the Federal Reserve may release statistics on inflation in the United States, which might provide insight into the direction of interest rates. The price of oil would rise if there was any indication that the central bank would shortly lower rates.