WASHINGTON (dpa-AFX) - Crude oil inched higher on Wednesday as the US keeps door open for trade negotiations, raising hopes of an end to the trade war, while US President Donald Trump shortened the grace period for Russia to avoid sanctions on its energy trades from 50 to 10 days.
Today, WTI Crude Oil for September delivery was last seen trading, up by $0.82 (or 1.18%) at $70.02 per barrel..
Yesterday, Trump had threatened Russia to end its three-year-plus war on Ukraine in another 10 days. Russia would face high tariffs and sanctions on its energy exports if it fails to do so.
To make his stance clear, today he announced plans to impose a penalty on top of his other tax levies on India as India buys Russian crude oil.
However, a Russian spokesperson, in response, merely stated that Russia has immunity to sanctions for long.
As the outcome of this stand-off could push or pull the oil price, oil and energy traders are focused on Russia's final decision.
With the August 1 deadline for 'reciprocal tariffs' suspension period ending the day after tomorrow, officials of major US trading partners have been involved in intense bilateral negotiations with the US.
US-China trade talks in Sweden concluded without a major breakthrough. Canada, India, and South Korea are engaged in serious talks with the US.
For the week ending July 25, the US EIA data revealed that crude oil inventories in the US rose by 7.698 million barrels; gasoline inventories dropped by 2.725 million barrels, and distillate increased by 3.635 million barrels. Net crude imports fell by 1.317 million barrels per day.
The build brings commercial stockpiles to 426.7 million barrels.
Yesterday's API's figures indicated that crude oil inventories grew by 1.539 million barrels.
The OPEC+ member-nations are unanimous in increasing output by 548,000 bpd in August as another step towards unwinding production cuts which began in April 2025.
Analysts however feel that despite over-supply concerns versus a positive demand outlook, oil price path would emerge brighter once the tariff war ends by the second week of August.
A smoother tariff regime could invigorate the global economy and thereby consumption, and as a result increase the demand for oil and energy.
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