Quick overview

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Oil prices declined as traders monitored a potential glut and US pressure on India to halt Russian oil imports.

West Texas Intermediate crude dropped about 1% to below $ 64 after three weeks of trading between $62 and $65 per barrel.

Peter Navarro, the White House trade adviser, increased pressure on New Delhi to stop buying Russian oil after Washington doubled a 50 percent import tax. As part of its efforts to end the Ukraine war, the US has singled out India for importing Russian crude. Ukraine has intensified drone attacks on Russia’s oil infrastructure to support falling oil prices, hitting two more refineries after recent strikes.

Bloomberg’s tanker data showed a decrease in Moscow’s crude exports. It’s widely expected that oil markets will enter a surplus by year’s end, as demand is overtaken by increased production from both inside and outside of OPEC+.

The next OPEC+ meeting is scheduled for September 7, but, according to a senior delegate, no discussions about future actions have begun. Although a surplus is likely by year-end, its impact on the market remains uncertain. America Corp. stated on Wednesday that the extra supplies could be easily absorbed, given roughly one billion barrels of spare storage capacity. As a result, the Brent market has recently faced some weakness after a surge.