WASHINGTON (dpa-AFX) - Crude oil edged higher on Monday as Russia shrugged off the US deadline to end its war with Ukraine or face sanctions. Focus now shifts to a meeting between the presidents of the US and Russia in Alaska this Friday.
Today, the WTI Crude Oil for September delivery was last seen trading up by $0.17 (or 0.27%) at $64.05 per barrel.
Recently, US President Donald Trump threatened Russia to end its three-plus-year old war with Ukraine or face heavy tariffs on its oil exports along with 'secondary sanctions' to countries purchasing oil from Russia.
The deadline expired last Friday, with Russia being mute to the sanction threats.
Notably, as a 'penalty tariff,' Trump levied a 25% additional duty on India, a major purchaser of Russian oil.
Against this backdrop, last Friday, Trump announced a planned meeting with the Russian President Vladimir Putin in Alaska on August 15.
An agreement to end the war could lift all sanctions against Russia both by the EU and the US and lead to an increase in Russian crude experts.
On the trade front, the tariffs imposed by Trump on a majority of US trading partners that came into effect last week are expected to disrupt supply chains across the world and to add inflationary pressures. Such a scenario would be bearish for oil prices, although the outcome is still unclear.
By tomorrow, the deadline set for tariff resolution between the US and China comes to an end.
The OPEC Monthly Report that could shed significant light on crude oil supply and demand position is also due to be released tomorrow.
As OPEC+ restores output faster than planned, unwinding 2023 cuts, so far this year, oil prices are down over 10%.
Market attention is focused on the upcoming US inflation data due tomorrow which could influence the US Fed's decision on rate cuts. A weaker-than-expected CPI could result in the lowering of interest rates.
This move would stimulate brisk economic activity and increase demand for oil and energy, a positive for crude oil prices.
In a significant development, concerns about bullion imported into the US undergoing tariff levies were allayed today as Trump posted on his social media platform Truth Social that gold will not be tariffed.
With this, the confusion and uncertainty on 'gold tariffs' that sent gold prices higher last Friday have come to an end.
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