Crude Oil Prices Decline as US Tariff Threats on Russia Weigh on Markets

Crude oil futures slipped on Tuesday morning as traders digested renewed geopolitical risks and the possibility of fresh US tariffs targeting Russia. The weak momentum comes after a short-lived rally earlier this week.

Brent and WTI Futures Edge Lower

At 9:58 a.m., November Brent futures dropped 0.44% to $67.92, while October WTI (West Texas Intermediate) futures were down 0.49% at $64.48.

On the Multi Commodity Exchange (MCX):

• September crude oil contracts traded at ₹5,674, a 0.42% decline from ₹5,698.
• October futures were at ₹5,649, down 0.44% from ₹5,674 in the previous session.

US Tariff Concerns Pressure Oil Prices

The downside comes after US President Donald Trump warned of possible additional sanctions against Russia if no progress is achieved in Ukraine peace talks.

Commenting on the situation, Warren Patterson, Head of Commodities Strategy at ING Think, and Ewa Manthey, Commodities Strategist, noted in their Commodities Feed that markets may not fully price in the threat. They stressed that the lack of follow-up action after the Trump-Putin summit has made investors cautious about reacting too strongly.

Adding to the volatility, oil had gained over 2% on Monday following reports of an attack on a Russian nuclear facility, sparking temporary supply fears.

Impact of New US Tariffs on India

The US has officially announced a 25% tariff on India, effective August 27. According to ING Think, if India continues importing Russian crude despite the secondary tariff, the overall market outlook may not shift. Instead, the move strengthens the bearish forecast for global oil prices.

Performance of Other Commodities

• Natural Gas: On MCX, September natural gas futures climbed 0.86% to ₹246.40, compared to the previous close of ₹244.30.
• Turmeric: On NCDEX, October turmeric (farmer polished) contracts slipped 0.69% to ₹13,282, down from ₹13,374.
• Jeera (Cumin): September jeera futures eased 0.43% to ₹19,600, versus ₹19,685 in the last session.

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