Global crude oil prices dropped by over 1% on Tuesday, driven by concerns over increasing supply from the OPEC+ alliance and potential softening in global energy demand.
This decline overshadowed U.S. President Donald Trump’s recent warnings to India regarding its continued purchase of Russian oil.
The OPEC+ group, which includes the Organisation of the Petroleum Exporting Countries and its partners, reached a deal on Sunday to increase crude output by 547,000 barrels per day in September—an earlier-than-expected reversal of previous supply cuts, as per Reuters.
Brent crude, mid-Tuesday, fell 82 cents (1.2%) to $67.94 per barrel, while U.S. West Texas Intermediate dropped 88 cents (1.3%) to $65.41. Both benchmarks had fallen by over 1% the day before, hitting their lowest levels in a week.
Trump once again issued trade threats on Tuesday, hinting at higher tariffs on Indian exports in response to the country’s Russian oil imports. He suggested falling oil prices could pressure Russian President Vladimir Putin to reconsider the ongoing conflict in Ukraine. India condemned the remarks as “unjustified” and reiterated its intention to defend its economic priorities, worsening bilateral trade tensions.
According to oil broker PVM’s John Evans, traders appear unconvinced that the situation will escalate to the point of supply disruptions. He questioned whether the U.S. leader would risk stoking oil prices through such actions.
“I’d call it a stable market for oil,” UBS analyst Giovanni Staunovo noted. “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 remains Russia’s top seaborne crude oil customer, importing approximately 1.75 million barrels per day in the first half of this year, marking a modest 1% annual increase, per trade figures seen by Reuters.
These developments unfold amid broader worries about global oil demand, with analysts forecasting weaker economic activity during the latter part of the year.
