Brent declines further on easing geopolitical risks

The front-month ICE Brent contract has declined by $0.30/bbl on the day from Friday, to trade at $65.89/bbl at 09.00 GMT.

IMAGE: Oil storage tanks. Getty Images

Upward pressure:

Brent crude’s price has found little support after stern remarks from a US spokesperson, heightening supply-related concerns.

White House trade adviser Peter Navarro said India’s imports of Russian crude were effectively financing Moscow’s war in Ukraine and should be halted, Reuters reports.

India currently faces a 50% tariff on all exports to the US because of its continued purchases of Russian crude oil.

Notably, China – the world’s second-largest oil consumer – and India remain the two leading buyers of Russian oil.

Downward pressure:

Brent crude’s price has moved lower over the weekend amid reduced concerns over tighter sanctions against Russia following the Alaska summit.

On Friday, US and Russian Presidents Donald Trump and Vladimir Putin met to discuss the prospects of a US-brokered ceasefire deal between Russia and Ukraine.

“It’s unsurprising to see oil trading lower this morning following the Trump-Putin summit in Alaska,” two analysts from ING Bank said.

While the talks failed to secure an immediate ceasefire, “the tone and the absence of “severe consequences” for the lack of a truce, reduce, or at least delay, the risks of stricter sanctions,” the analysts said.

By Aparupa Mazumder

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