WASHINGTON (dpa-AFX) - Crude oil prices moved higher on Tuesday, as the shortening of the deadline from 50 to less than 12 days for Russia to finalize an agreement with Ukraine by the US triggered supply side concerns. Russia is seemingly unfazed by the threat.
WTI Crude Oil for September delivery was last seen trading up by $2.81 (or 4.21%) to $69.52 per barrel today.
Around mid-July, US President Donald Trump threatened Russia to end its war with Ukraine within 50 days or face huge sanctions though Russia did not take it seriously. The proposed sanctions would slap 100% tariff on buyers of Russian oil, China and India being the notable victims.
Days before, Trump asked Russia to settle for a ceasefire deal sooner in around 10-12 days. However, Russia seems unfazed as attacks on Ukraine continued even yesterday.
Russia caters to around 4.5% of global demand. In June, crude exports were 4.68 million barrels per day and 2.5 million bpd of refined products.
As a positive for demand side, with countries queueing up to sign a trade pact with the US before August 1, traders are relieved that deals would boost economic activity and swiftly encourage cross-border commerce. This, in turn, could drive up oil demand through increased transportation and industrial energy use.
On the supply side concerns, OPEC+ is expected to raise output in August and Venezuelan crude could re-enter the market after easing of US sanctions last week.
Traders are eyeing on the ongoing US Federal Reserve's two-day policy meeting that concludes tomorrow to know more about interest rate cut decision.
Data released by the US Commerce Department revealed that US trade deficit in goods has narrowed by $10.4 billion in June compared to May.
US wholesale inventories rose 0.2% month-over-month from a 0.3% decline in May.
Redbook Index in the US increased by 4.90% for the week ending July 26.
Housing Index in the US decreased to 434.40 points in May from 435.10 in April.
Analysts are now focusing on June PCE inflation index and July jobs report to be released this week.
The Houthi rebel groups threat to attack all ships (having tie-ups with Israel) passing through the Red Sea has not been directly countered by the US or the West militarily. The situation is tense but without any adverse events. Hence, oil prices do not face any significant volatility as of now.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
