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Summary
- Brent and US crude stabilise after three consecutive declines
- OPEC+ output hike, demand worries add to oversupply outlook
- Trump again threatens India with high tariffs over Russian oil purchases
LONDON, Aug 5 (Reuters) – Oil was little changed on Tuesday as traders assessed rising OPEC+ supply and worries of weaker global demand, against U.S. President Donald Trump’s threats to India over its Russian oil purchases.
The Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, agreed on Sunday to raise oil production by 547,000 barrels per day for September, a move that will end its most recent output cut earlier than planned.
Brent crude futures were down 36 cents, or 0.5%, to $68.40 a barrel at 0910 GMT, while U.S. West Texas Intermediate crude slipped 41 cents to $65.88. Both contracts fell by more than 1% on Monday to settle at their lowest in a week.
Trump on Monday again threatened higher tariffs on Indian goods over the country’s Russian oil purchases. New Delhi called his attack “unjustified” and vowed to protect its economic interests, deepening a trade rift between the two countries.
Oil’s limited move since Trump’s threat indicates that traders are sceptical of a supply disruption will happen, said John Evans of oil broker PVM in a report. He questioned whether Trump would risk higher oil prices.
“I’d call it a stable market for oil,” said Giovanni Staunovo, analyst at UBS. “Assume this likely continues until we figure out what the U.S. president announces in respect to Russia later this week and how those buyers would react.”
India is the biggest buyer of seaborne crude from Russia, importing about 1.75 million bpd from January to June this year, up 1% from a year ago, according to data provided to Reuters by trade sources.
Trump’s threats come amid renewed concerns about oil demand and some analysts expect faltering economic growth in the second half of the year.
JPMorgan said on Tuesday the risk of a U.S. recession was high. Also, China’s July Politburo meeting signalled no more policy easing, with the focus shifting to structural rebalancing of the world’s second-largest economy, the analysts said.
Additional reporting by Anjana Anil in Bengaluru and Siyi Liu in Singapore. Editing by Mark Potter and Louise Heavens
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