Crude gained as pressure mounts on Russia over Ukraine war

Oil prices extended gains on Wednesday as the United States signaled tougher penalties for countries trading with Russia, underscoring rising geopolitical tensions in global energy markets.

Brent crude gained 73 cents, or 1.01%, to settle at $73.24 a barrel. 

WTI rose 79 cents, or 1.14%, to close at $70.00. 

Investors largely brushed off mixed US crude and fuel inventory data, focusing instead on the growing threat of supply disruptions.

The US announced plans to shorten Russia’s timeline to end the war in Ukraine from 50 days to between 10 and 12 days. He also proposed a 100% secondary tariff on entities that continue purchasing Russian oil.

A 25% tariff on Indian imports is set to take effect on 1 August, alongside unspecified penalties for buying Russian weapons and crude. This measure could affect up to 2.3 million barrels per day of Russian oil exports, although trade negotiations between Washington and New Delhi are still ongoing. China, Russia’s largest oil customer, was also warned that it could face steep tariffs if it maintains current levels of imports.

Written: Farid Muzaffar