Benchmark Brent crude prices rose 0.8% at $73.06 per barrel, while U.S. West Texas Intermediate crude prices gained 0.7% at $69.67 per barrel at 3.56 a.m. ET.
Oil prices gained in early trading on Wednesday as investors assessed U.S. President Donald Trump’s new deadline for Russia to end the war in Ukraine.
Benchmark Brent crude prices rose 0.8% at $73.06 per barrel, while U.S. West Texas Intermediate crude prices gained 0.7% at $69.67 per barrel at 3.56 a.m. ET. Both contracts rose by more than 3% in the previous session after Trump announced that he would begin imposing tariffs on Russian oil buyers within 10 to 12 days, unless Russia makes progress toward ending the war within the same timeframe.
Trump had earlier this month given a 50-day deadline for Moscow to end the war in Ukraine, and said that his administration would impose 100% tariffs on countries that buy crude from Russia. India and China, two of the world’s top crude importers, are the biggest buyers of Russian oil.
Retail sentiment on Stocktwits about the United States Oil Fund (USO) was in the ‘bullish’ territory at the time of writing.
“The $4 to $5 per barrel of supply-risk premium injected in recent days can be expected to be sustained, unless Putin makes a conciliatory move,” said Vandana Hari, founder of oil market analysis provider Vanda Insights, according to a Reuters report.
JP Morgan analysts reportedly stated in a note that while China is unlikely to comply with U.S. sanctions, India has signaled it would do so, which puts 2.3 million barrels per day of Russian oil exports at risk.
Oil investors are also watching the U.S. Federal Open Market Committee meeting, which begins on Wednesday. While the market expects the U.S. central bank to hold its rates, any bullish commentary about rate cuts could lead to another spike in prices.
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