Easy trading Tips – Oil prices bounced back on Wednesday following sharp declines, fueled by market anxiety over potential supply disruptions. The rebound came in response to former U.S. President Donald Trump’s renewed threats to impose tariffs on Indian goods if the country continues importing Russian crude.
As of 0330 GMT, Brent crude futures rose 43 cents (0.6%) to $68.07 per barrel, while U.S. West Texas Intermediate (WTI) climbed 40 cents (also 0.6%) to $65.56.
Commodity analysts at ING noted that uncertainty continues to swirl around possible secondary sanctions on Russian oil buyers, with speculation now turning to China’s purchases. “If India ceases imports under pressure, the market could absorb the shock,” they stated, “but a broader retreat from Russian oil would pose greater risks.”
The rebound follows Tuesday’s losses of over $1 for both benchmarks — their lowest closing levels in five weeks — driven by concerns about an oversupplied market after OPEC+ confirmed plans to raise output by 547,000 barrels per day in September.
Yuki Takashima of Nomura Securities added, “Traders are weighing the likelihood of India responding to Trump’s threats. If purchases continue, WTI could remain in the $60–$70 range through August.”
OPEC+, responsible for nearly 50% of global oil production, has steadily unwound past output cuts to regain market share, and its latest decision advances that effort. However, geopolitical tensions risk altering the balance.
Washington’s pressure campaign is part of a broader effort to reduce Moscow’s revenues and push for a resolution in Ukraine. Trump reiterated his stance Tuesday, threatening higher tariffs within 24 hours on Indian products, arguing that lower energy revenues could weaken President Putin’s position.
India dismissed the threats as “unjustified” and vowed to safeguard its national economic priorities, signaling a possible deepening of trade tensions between New Delhi and Washington.
Meanwhile, supportive U.S. inventory data helped bolster oil market sentiment, as highlighted by Nomura’s Takashima.