Oil prices slipped during Asian trade on Thursday as market participants assessed the implications of United States tariffs on India’s Russian oil imports.
By 3:10 pm AEST (5:10 am GMT), Brent crude futures declined 58 cents, or 0.9%, to US$67.47 a barrel, while West Texas Intermediate (WTI) fell by the same margin to US$63.57.
Both benchmarks had gained more than 1.1% in the previous session.
Fresh data from the U.S. Energy Information Administration showed crude inventories fell by 2.4 million barrels in the week ending August 22, exceeding forecasts for a 2-million-barrel draw. The decline pointed to firm demand ahead of the U.S. Labor Day holiday weekend.
Despite the supportive data, technical charts suggest crude remains capped by resistance around US$64–65 a barrel, with the potential to test support near US$60.
Markets are also closely monitoring India’s response to mounting pressure from Washington to curb imports of Russian oil. U.S. President Donald Trump doubled tariffs on Indian imports to as much as 50% on Wednesday, raising questions about future supply flows.
Geopolitical risks added another layer of support this week, with Russia intensifying strikes on Ukraine’s energy infrastructure.
Ukrainian officials reported that a massive drone attack overnight damaged gas and energy facilities across six regions, leaving more than 100,000 people without electricity.
In the U.S., expectations of an interest rate cut also bolstered oil sentiment, with investors betting looser monetary policy could stimulate economic activity and fuel demand.
New York Fed President John Williams said Wednesday that rates are likely to fall at some stage, but stressed the decision will hinge on upcoming economic data before the central bank’s 16–17 September meeting.
