(Bloomberg) — Oil prices fell in choppy trading as traders took stock of OPEC+\u2019s latest bumper supply increase while US President Donald Trump\u2019s stepped up threats to penalize India for buying Russian crude, raising fears of tightening global supplies.<\/p>\n
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West Texas Intermediate crude traded close to $66 a barrel after Trump\u2019s renewed warnings of tariffs on India over purchases of Russian oil. The latest fluctuation came after oil prices hit the lowest in a week as OPEC+ endorsed an additional 547,000 barrels-a-day of output for next month.<\/p>\n
\u201cWe still have this looming deadline for Russia to come to the table for a ceasefire with Ukraine,\u201d said Frank Monkam, head of macro trading at Buffalo Bayou Commodities. Trump\u2019s reiteration of possible tariffs on India for buying Russian oil \u201creminded the market that this whole thing is still in limbo.\u201d<\/p>\n
US Special Envoy Steve Witkoff is expected to visit Russia on Wednesday, Tass reported, citing people familiar with the plans. Some investors \u2014 already wary of Trump\u2019s habit of threatening economic penalties just to reverse course days later \u2014 see the development as a clue that an agreement between Washington and Moscow may be reached before any significant penalties come to pass.<\/p>\n
Still, the impact of any potential measures is uncertain. \u201cThe oil market is still assigning a low probability to anything meaningful from the White House as it relates to Russian oil exports,\u201d said Pavel Molchanov, an analyst at Raymond James. \u201cThe only way to zero out Russian oil exports would be to implement a full-fledged naval blockade of the Russian coastline, which no one is seriously considering.\u201d<\/p>\n
Earlier in the session, Indian Prime Minister Narendra Modi struck a defiant tone in the face of Trump\u2019s threats, signaling his country would continue to buy Russian oil. That walked back earlier gains on signs of dropping refinery run rates in the Asian country as a result of Trump\u2019s threats against Moscow, which had stoked fears of tightness in refined-product markets.<\/p>\n
Crude is coming off three months of gains. Prices had slumped Friday as soft US jobs data raised concern the world\u2019s largest economy was slowing following the Trump administration\u2019s wave of trade tariffs. While global crude stockpiles grew early in the year, much of the increase has been in China, far away from the market\u2019s vital pricing points.<\/p>\n
Story Continues <\/p>\n
The September output hike announced by OPEC+ over the weekend stands to complete the reversal of a cutback made in 2023 by an eight-member sub-group in the alliance that includes Saudi Arabia and Russia. The progressive restoration of supplies over recent months has been widely seen as a concerted push by the cartel to reclaim market share. It\u2019s uncertain whether additional curtailed output will be restored in the coming months, or the group will now stand pat.<\/p>\n
The latest increase may reinforce speculation that global crude supplies will run ahead of demand into the end of the year, lifting commercial stockpiles, compressing key market timespreads, and setting the scene for a selloff.<\/p>\n
Most Read from Bloomberg Businessweek<\/p>\n
\u00a92025 Bloomberg L.P.<\/p>\n","protected":false},"excerpt":{"rendered":"(Bloomberg) — Oil prices fell in choppy trading as traders took stock of OPEC+\u2019s latest bumper supply increase…\n","protected":false},"author":2,"featured_media":317644,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7655],"tags":[3662,2662,2795,332,5422,4541],"class_list":{"0":"post-317643","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-russia","8":"tag-bloomberg","9":"tag-oil-prices","10":"tag-opec","11":"tag-russia","12":"tag-russian-oil","13":"tag-trade-tariffs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114971596763143320","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/317643","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=317643"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/317643\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/317644"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=317643"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=317643"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=317643"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}