Oil Prices Dip Amid US Tariff Threats on Russian Exports, Inventories Rise

Oil prices experienced a decline after a three-day rally, as investors reacted to President Donald Trump's accelerated deadline for Russia to end the war in Ukraine and his threat of imposing 100 percent secondary tariffs on countries continuing to purchase Russian oil, including major buyers like China and India. These tariff threats raised concerns about potential supply disruptions, which initially supported prices, but were offset by a surprising build in U.S. crude inventories and profit-taking by traders. Despite the downward pressure, the market remained sensitive to geopolitical developments, with ongoing trade negotiations between the U.S. and India and fresh U.S. sanctions on Iran further complicating the global energy landscape. Analysts noted that while the hawkish U.S. stance underpins tight-market premiums, factors such as a strong dollar, subdued global growth indicators, and rising inventories limited price gains. Refinery updates, such as delays in restarting a fire-affected California refinery, added nuance to market dynamics but did not significantly alter the overall trend. Investors continue to monitor the evolving situation closely as the August 1 deadline for new tariffs approaches and OPEC+ meetings loom.