Daijiworld Media Network – Singapore
Singapore, Aug 25: Oil prices steadied on Monday after a weekly gain, with traders weighing supply concerns and the broader risk sentiment following signals of a return to US interest-rate cuts.
Global benchmark Brent hovered near USD 68 a barrel after rising almost 3% last week, while West Texas Intermediate (WTI) traded above USD 63. The development comes as the US threatened to double tariffs on all imports from India to 50% in retaliation for New Delhi’s continued purchases of Russian crude. The penalty is set to take effect from Wednesday.
Indian diplomats, however, maintained that local refiners would continue buying oil from Moscow to ensure the country’s energy security.
Risk assets, including commodities, extended gains on Monday, supported by Federal Reserve Chair Jerome Powell’s signal of possible rate cuts next month. Analysts said crude could benefit from a boost to economic activity and a weaker US dollar.
Brent prices have largely moved within a narrow range this month amid thin summer trading, with markets closely tracking disruptions to Russian exports, the Ukraine conflict, and the impact of the US-led trade war. Futures remain about 9% lower this year, reflecting concerns of oversupply after OPEC+ resumed idled production.
“Attention remains largely consumed by short-term events, and the potential downside risks in fundamentals have yet to be priced in,” noted Gao Jian, analyst at Qisheng Futures Co., adding that the impact of any Fed cuts may take time to materialize.
Meanwhile, US President Donald Trump last week threatened Russia with “massive sanctions” unless a Ukraine deal is reached within two weeks, though he also hinted Washington could “do nothing.”
Trading volumes in Brent futures were lower than average in early Asian hours, with some traders off for the UK public holiday.
Prices (as of 8:46 am Singapore time):
• Brent for October settlement: up 0.1% to USD 67.79 a barrel
• WTI for October delivery: up 0.1% to USD 63.75 a barrel