Oil Prices Dip as Geopolitical Uncertainty Clashes with Strong US Inventory Data

Highlights:

• Brent crude fell 1.2% to $US66.86 per barrel at the time of writing, pressured by US-Russia-India tensions.
• US oil stockpiles dropped by 3 million barrels, while refineries hit their highest seasonal run rates since 2019.
• Saudi Aramco raised selling prices for a third month, signalling bullish demand expectations.

Tensions Rise Over Russian Energy Trade and New US Tariffs

Oil prices edged lower overnight as investors weighed rising geopolitical tensions against bullish inventory data from the United States. At the time of writing, Brent Crude Oil was trading 1.2% lower at $US66.86 per barrel, reflecting market caution amid conflicting signals. Pressure mounted after the United States intensified its diplomatic push to restrict allies from purchasing Russian oil, aiming to steer Moscow toward peace negotiations with Ukraine. The situation escalated further when US President Donald Trump announced a 25% tariff on Indian imports, citing India’s continued crude purchases from Russia. The tariff is set to take effect in 21 days, offering a window for possible negotiations. According to ANZ, “Reports also emerged that Trump is planning a meeting with Russian President Vladimir Putin as early as next week, potentially followed by a trilateral session including Ukrainian President Volodymyr Zelensky. This has traders speculating about a possible shift in the US’s stance on Russia.”

Robust US Data Offers Support

Despite the geopolitical jitters, oil found some support from the latest US inventory figures. Data from the Energy Information Administration (EIA) showed commercial crude stockpiles fell by over 3 million barrels last week, dropping to 423.7 million barrels—a two-week low. US refineries operated at their highest seasonal capacity since 2019, indicating strong domestic demand.

Saudi Aramco Signals Confidence

Meanwhile, Saudi Aramco raised its official selling prices for a third consecutive month, reinforcing optimism about global demand recovery. The move suggests confidence from one of the world’s top oil producers, even amid market volatility.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com