Oil prices eased on Tuesday, pausing after a sharp rally in the previous session, as traders assessed the latest developments in the Russia-Ukraine conflict and their implications for global fuel supplies.
Brent crude futures dropped by 32 cents, or 0.5 per cent, to trade at $68.48 a barrel near 10:30 AM. West Texas Intermediate (WTI) also declined by 33 cents, or 0.5 per cent, to $64.47 per barrel, reported Reuters.
Both benchmarks had touched their highest levels in over two weeks on Monday, with WTI climbing above its 100-day moving average.
Geopolitical Risks Drive Market Moves
The earlier price surge was largely fuelled by fears of supply disruptions following Ukraine’s strikes on Russian energy infrastructure. These attacks impacted Moscow’s oil processing capacity and exports, resulting in localised gasoline shortages in parts of Russia. The escalation came amid intensifying Russian offensives targeting Ukraine’s gas and power networks.
Analysts at IG noted that, “The risks for crude oil prices appear tilted toward further gains, particularly if the price sustains a move above the $64-$65 resistance level.” Barclays, in its client note, also highlighted that oil prices remain in a tight range, driven by geopolitical volatility alongside resilient market fundamentals.
Adding to market jitters, US President Donald Trump reiterated his warning that fresh sanctions on Russia could follow if there is no progress towards a peace agreement within two weeks.
India Faces Added Pressure from Tariffs
Meanwhile, traders are keeping a close eye on potential trade disruptions after Washington confirmed a steep tariff hike on Indian goods. The US Department of Homeland Security announced that an additional 25 per cent duty on Indian-origin goods will take effect from Wednesday.
This will double the total tariff burden to as much as 50 per cent, one of the highest imposed by Washington. The move follows India’s continued imports of Russian crude despite repeated US warnings.
Indian exporters are now bracing for the impact. Market observers suggest this may influence India’s future energy strategy, especially its reliance on discounted Russian oil.
Inventory Data in Focus
Attention now turns to US stockpile figures, with the American Petroleum Institute (API) scheduled to release its weekly report later today. Early projections point to a decline in crude and gasoline inventories, while distillate stocks may see a modest build.
