Oil prices climbed on Wednesday, recovering from a five-week low recorded the day before. The rebound follows heightened market concerns over potential supply disruptions after former U.S. President Donald Trump threatened tariffs on India due to its continued purchases of Russian crude oil.
By 03:30 GMT, Brent crude futures rose by 43 cents, or 0.6%, to $68.07 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by 40 cents, or 0.6%, to $65.56 per barrel.
According to analysts from ING, “There’s still plenty of uncertainty over the U.S. imposing secondary tariffs on buyers of Russian oil.” They added that market discussions were intensifying, with speculation that China’s crude purchases from Russia could soon come under scrutiny.
“If India were to stop buying Russian oil amid tariff threats, we believe the market would be able to cope with the loss of this supply,” the strategists noted. However, they warned that a broader pullback from Russian oil by other major importers would pose a more significant risk to global supply stability.
This price uptick comes after both crude benchmarks fell over $1 on Tuesday, marking a fourth consecutive session of losses and hitting their lowest levels in five weeks. The earlier drop was driven by concerns about oversupply, particularly from OPEC+’s planned output increase scheduled for September.
Despite ongoing volatility, the latest price gains reflect how geopolitical developments and trade tensions continue to play a central role in shaping the oil market’s direction.
