Global oil prices steadied on Wednesday after falling in the previous session as investors focused on developments in the war in Ukraine and the impact of new high US tariffs on India, the world's third-largest crude consumer.
Brent crude futures fell 9 cents to $67.13 a barrel, while West Texas Intermediate (WTI) crude fell 8 cents to $63.17 a barrel.
Both contracts fell more than 2% on Tuesday after starting the week at two-week highs.
Oil markets remain volatile due to the unresolved Ukraine war. Previous discounts related to the Ukraine peace have been canceled, but the market has yet to price in major supply risks.
US special envoy Steve Witkoff is scheduled to meet Ukrainian representatives in New York this week and continue talks with Russia to end the conflict.
In addition, US President Donald Trump implemented a doubling of tariffs on goods imported from India by up to 50% starting Wednesday. The move comes in response to India’s increased purchases of Russian oil since Moscow’s invasion of Ukraine.
Analysts say the new US tariffs may not have a significant impact on India’s imports of Russian oil. Since early 2022, India is estimated to have saved at least $17 billion through increased oil imports from Russia.
The war in Ukraine has also affected the oil market with Ukrainian drone attacks on Russian refineries reducing their operations. This has forced Russia to export more crude oil that it cannot process.
