Oil Markets: Supply Concerns Push Crude Prices Lower Despite Trump’s Tariff Threats On India

Brent crude prices slipped by 0.3% at $68.59 per barrel, while U.S. West Texas Intermediate crude prices fell by 0.6% at $65.87 per barrel at 4.50 a.m. ET.

Oil prices dipped again on Tuesday as oversupply concerns following another large hike in OPEC+ production continued to outweigh concerns over Trump’s actions against India.

Brent crude prices slipped by 0.3% at $68.59 per barrel, while U.S. West Texas Intermediate crude prices fell by 0.6% at $65.87 per barrel at 4.50 a.m. ET. Both future contracts had slipped 1% on Monday as investors assessed the impact of the output hikes.

Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘neutral’ territory at the time of writing.

The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, said on Sunday that they would increase September production by 547,000 barrels per day (bpd) compared to August, the latest in a series of output hikes as they attempt to regain market share.

“Global inventories have tracked higher in confirmation that a physical surplus has already arrived,” author of Evans on Energy, Tim Evans, had said in a note.

However, Goldman Sachs analysts noted that the actual supply boost from the eight OPEC+ countries stands at about 1.7 million bpd, or about two-thirds of announced capacity, as other group members have looked to cut capacity to compensate for overproducing earlier.

Potential tariffs on buyers of Russian oil continue to prevent a further drop in oil prices. On Monday, U.S. President Donald Trump threatened to impose “substantially” higher tariffs on India, accusing New Delhi of profiting from Russian oil sales while ignoring the ongoing war in Ukraine.

India replied by saying that it has been “targeted” by the European Union and the U.S. for buying Russian oil, despite the two countries continuing to trade with Moscow.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<