Oil prices slipped on Tuesday after four straight days of gains, pulling back from a near three-week high. For consumers, this dip offers temporary relief at the pump, but analysts warn the market remains volatile as the war in Ukraine, US sanctions, and new tariffs on India weigh heavily on global energy flows.
By 1040 GMT, Brent crude fell $1.08, or 1.57%, to $67.72 a barrel. U.S. West Texas Intermediate (WTI) dropped $1.13, or 1.74%, to $63.67. Both benchmarks had jumped almost 2% on Monday after Ukraine attacked Russian energy infrastructure, sparking fears of tighter supply.
“Today’s modest drop reflects risk aversion, with equity markets down,” said UBS analyst Giovanni Staunovo. “But the bigger story is geopolitical. Much depends on whether Donald Trump pushes sanctions if peace talks fail.” Trump has warned Russia it faces new U.S. sanctions if there is no progress on a Ukraine peace deal in two weeks.
Ukraine’s strikes have damaged Russian oil facilities, creating gasoline shortages in parts of Russia. Meanwhile, Moscow continues to pound Ukraine’s gas and power grids, deepening the energy standoff. Analysts say prices could remain locked between $65 and $74 a barrel. “The oil market is clouded by uncertainty. Investors are reluctant to take big bets,” said Tamas Varga of PVM Oil Associates.
India also faces pressure. Washington is weighing tariffs of up to 50% on Indian exports over New Delhi’s continued purchase of Russian crude. “India is the third-largest buyer of Russian oil, and any U.S. tariffs could cause ripple effects across energy and trade markets,” said Ole Hansen of Saxo Bank.
For now, traders are keeping one eye on Ukraine and the other on Washington’s tariff moves, knowing both could decide whether prices surge again—or fall further.
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