Oil prices fell after a monthly decline in August, as market participants focused on risks from oversupply and geopolitical tensions.
Brent crude dropped toward $67 per barrel, while West Texas Intermediate (WTI) fell below $64 per barrel. The decline comes as Washington pressures India to halt imports of Russian oil by tightening secondary sanctions, coinciding with a regional summit in China where Indian Prime Minister Narendra Modi is set to meet Russian President Vladimir Putin today, Monday.
اضافة اعلان
India Maintains Ties with Moscow
Ahead of the meeting, New Delhi reaffirmed its commitment to its relationship with Russia, describing U.S. measures as “unfair, unjustified, and illogical.” Meanwhile, domestic refiners continued purchasing Russian crude, although some opportunistic deals for U.S. shipments were recorded.
Global benchmark oil has fallen nearly 10% year-to-date, impacted by rising supply from the OPEC+ alliance and concerns that the U.S.-led trade war could curb energy demand.
The producer coalition, which includes Russia, plans a virtual meeting on September 7 to discuss its next steps. The International Energy Agency (IEA) expects the market to face a record surplus next year.
Market Outlook
Gao Mingyu, senior energy analyst at SDIC Essence Futures, said:
“The focus is now on the upcoming OPEC+ meeting, where the potential reintroduction of the remaining 1.65 million barrels per day in voluntary production cuts will be discussed. After the peak season, the pressure of excess supply in the oil market will become more evident.”
In the United States, hedge funds have cut their long positions in U.S. crude to their lowest level in about 18 years amid economic policy uncertainty and growing concerns over supply surpluses.
U.S. actions against India are part of a broader effort to end the war in Ukraine, although similar tariffs have not been imposed on China. Over the weekend, Peter Navarro, U.S. White House trade advisor, told Fox News Sunday:
“New Delhi is fueling the Russian war machine… it’s just a money-laundering mechanism for the Kremlin.”
Gao added:
“If no additional geopolitical disruptions occur, downward pressure on prices is likely to increase.”
Source: Bloomberg
