Oil prices held steady Friday as traders assessed the future of Russian crude shipments to India following renewed criticism from the Trump administration ahead of an expected tariff hike.
Market Moves:
- Brent crude traded just under $68 a barrel, still on course for its strongest weekly gain since early July.
- WTI hovered above $63.
US Criticism of India-Russia Oil Trade:
White House trade adviser Peter Navarro sharply criticized India for continuing purchases of Russian oil, accusing refiners of profiteering rather than meeting domestic needs. He reiterated that US tariffs on Indian imports are expected to double to 50% on August 27, with half of that increase tied to the nation’s Russian oil trade.
“India doesn’t appear to want to recognize its role in the bloodshed,” Navarro said. “They don’t need the oil. It’s a refining profit-sharing scheme.”
Despite pressure from Washington, Indian refiners have resumed buying Russian crude after a brief pause, and Moscow has indicated that flows will likely continue.
Broader Outlook:
Earlier this week, Navarro accused India’s “Big Oil lobby” of driving the surge in Russian crude imports since the Ukraine war, dismissing claims of energy security needs. Meanwhile, oil remains lower on the year as rising OPEC+ production and Trump’s trade policies fuel demand concerns.
ING’s Warren Patterson noted that the market’s fundamentals remain weak, with “significant inventory builds” expected next quarter, adding to bearish sentiment.
Summary
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Brent steady below $68, WTI above $63, both heading for weekly gains.
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US sharpens criticism of India’s Russian oil purchases, with tariffs on Indian imports set to double to 50% on Aug. 27.
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India continues buying, while Russia signals flows will remain steady.
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Fundamental outlook bearish, with rising OPEC+ supply and demand risks pointing to larger inventory builds ahead.
