FX.co ★ Brent Holds Decline

Brent crude oil futures stabilized at approximately $68.7 per barrel on Tuesday following a three-day decline. This price movement was influenced by escalating concerns regarding a potential supply surplus after OPEC+'s decision to increase output, despite looming uncertainties over Russian oil availability. On Sunday, OPEC+ committed to augmenting production by 547,000 barrels per day in September, thereby fully reversing the 2.2 million-barrel-per-day reduction previously implemented by eight member nations in 2023. Concurrently, the United States has intensified pressure on India to cease its purchases of Russian oil, as Washington attempts to steer Russia towards negotiating a peace agreement with Ukraine. In this context, former President Donald Trump announced on Monday his intention to "substantially raise" tariffs on India due to its continued Russian oil imports. Presently, India faces a 25% tariff on its exports to the United States. These events unfold amidst an already precarious global demand scenario, overshadowed by persistent trade tensions and recent weak economic indicators.