Oil prices eased during Asian deals on Tuesday after United States President Donald Trump issued a 50-day deadline for Russia to end its war in Ukraine, reducing fears that immediate sanctions could disrupt global crude supply.
By 3:25 pm AEST (5:25 am GMT), Brent crude futures fell 28 cents, or 0.4%, to $68.93 per barrel, while U.S. West Texas Intermediate (WTI) crude declined 35 cents, or 0.5%, to $66.63.
Trump warned that if Russia does not withdraw from Ukraine within 50 days, the U.S. would impose tariffs of up to 100% on Russian imports.
Although oil initially rose on the announcement, the extended timeline reassured markets that any supply disruption was not imminent.
"The pause eased concerns that direct sanctions on Russia could disrupt crude oil flows," analysts at ANZ noted.
The market also weighed broader tariff threats. Trump on Saturday announced a 30% tariff on most imports from the European Union and Mexico, effective from 1 August.
Additional warnings were issued for other countries continuing to trade with Russia. These proposed tariffs have stirred fears of slower global economic growth, potentially weighing on fuel demand and pressuring prices.
Despite these headwinds, the demand outlook remains firm. According to a Russian media report, the secretary general of the Organisation of Petroleum Exporting Countries (OPEC) said oil demand would stay "very strong" through the third quarter, keeping the market tightly balanced.
Meanwhile, Goldman Sachs raised its oil price outlook for the second half of 2025. The bank cited possible supply disruptions, declining oil inventories in OECD countries, and persistent production constraints in Russia as key bullish factors.
