Oil Prices Fall as Trump Sets 10-Day Deadline for Russia
Oil prices edged lower on Wednesday as investors weighed comments from former US President Donald Trump on shortening the timeline for Russia to end its war on Ukraine, alongside an unexpected increase in US crude inventories, signaling weaker demand.
International benchmark Brent crude was trading at $71.69 per barrel, down 0.03% from the previous session’s close of $71.71.
US benchmark West Texas Intermediate (WTI) crude fell 0.06% to $68.85 per barrel, down from $68.89 in the prior session. Market participants are closely watching developments following Trump’s updated deadline for Russia to end its war on Ukraine.
Trump said Tuesday that Russia has “10 days from today” to stop the war or face US penalties. He outlined the revised timeline while speaking to reporters aboard Air Force One, saying, “We’re going to put on tariffs and stuff” if Moscow does not halt its military actions.
Trump on Monday threatened Russia with sanctions and secondary tariffs, or tariffs on Russian trading partners, if it does not end the Ukraine war in “about 10 or 12 days,” much earlier than a previous 50-day deadline.
His new comments on Tuesday shifted the deadline even earlier, giving the Kremlin until Aug. 8 to act. His previous 50-day deadline would have fallen in early September.
Moreover, the American Petroleum Institute (API) reported over a 1.5 million-barrel increase in US crude inventories for the week ending July 25, defying market expectations for a 2.5 million-barrel draw. Signs of a build in US inventories raised some questions about demand in the world’s largest oil consumer, putting downward pressure on prices.
Traders now await official inventory data from the US Energy Information Administration (EIA), due later on Wednesday. Meanwhile, caution ahead of the US Federal Reserve’s (Fed) interest rate decision is also weighing on sentiment.
Despite Trump’s objections, the Fed is expected to maintain its current monetary policy stance at Wednesday’s policy meeting.
On Tuesday, the International Monetary Fund (IMF) revised its global economic growth forecast upward to 3% for this year and 3.1% for next year but warned that downside risks remain. #Oil Prices Fall as Trump Sets 10-Day Deadline for Russia UK Mortgage Reforms to Support Home Ownership, Limited Risk for Lenders
