Oil prices pause amid Trump’s ultimatum to Russia
30 July 08:57
Oil prices stabilized during trading in Asia on Wednesday after a sharp rise of more than 3% in the previous session. Investors are waiting for developments after a tougher ultimatum to Russia from US President Donald Trump, "Komersant Ukrainian" reports citing Reuters.
According to OilPrice.com, Brent crude oil futures rose by 11 cents, or 0.15%, to $72.62 per barrel as of 08:49 Kyiv time. U.S. West Texas Intermediate (WTI) remained at the previous level of $69.21 per barrel.
The September contract for Brent, which expires on Wednesday, rose by 18 cents to $72.69 per barrel. Both contracts closed at their highest levels since June 20 on Tuesday.
Trump’s ultimatum
On Tuesday, Trump said he would begin to impose measures against Russia, including secondary tariffs of 100% on trading partners, if it does not make progress in ending the war within 10-12 days. Previously, he gave 50 days for this.
“The supply risk premium of $4-5 per barrel that has emerged in recent days is expected to persist unless Putin makes a conciliatory move,”
– commented Vandana Hari, founder of Vanda Insights, an analytical company.
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Pressure on China and India
The United States has warned China, the largest buyer of Russian oil, that it could face huge tariffs if it continues to buy. This was stated by U.S. Treasury Secretary Scott Bessent at a press conference in Stockholm, where the United States was holding trade talks with China.
Analysts at JP Morgan noted that although China is unlikely to comply with US sanctions, India has signaled its willingness to do so. This jeopardizes 2.3 million barrels of Russian oil exports per day.
Trade agreements and prospects
The US and the European Union avoided a trade war by agreeing on US tariffs on European imports at 15%. This eased concerns about the impact of trade tensions on economic growth and supported oil prices.
In Venezuela, foreign partners of the state-owned oil company PDVSA are still awaiting US permission to operate in the country under sanctions. This could bring some supplies back to the market and reduce pressure on price growth.
Economic forecasts
Despite Trump’s objections, the US Federal Reserve is expected to keep interest rates unchanged at its meeting on Wednesday.
The International Monetary Fund on Tuesday slightly raised its global growth forecasts for 2025 and 2026, but warned of serious risks to the global economy, including the resumption of tariff rates, geopolitical tensions, and rising budget deficits.
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