Jakarta, shesocial Indonesia
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Oil price
The world rose on Wednesday (6/8), rising from the lowest position in the five weeks recorded the day before.
This increase was triggered by fears of supply disorders after US President Donald Trump threatened to impose tariffs on India related to the purchase of crude oil from Russia.
Quote
Reuters
, Brent crude oil prices rose 29 cents or 0.4 percent to US $ 67.93 per barrel.Similarly, the US West Texas Intermediate (WTI) crude oil rose 28 cents or 0.4 percent to the level of US $ 65.44 per barrel.
The two contracts previously fell more than US $ 1 on Tuesday (5/8), closed at the lowest level five weeks after experiencing a decline during four consecutive sessions.
Pressure occurs due to fears of oversuplai following the decision of OPEC+ which will increase production in September.
“Investors are considered whether India will reduce the purchase of Russian oil in response to Trump’s threat, which can tighten supply. However, it is still uncertain,” said Nomura Securities Economist Yuki Takashima.
Takashima said that if India’s imports remain stable, WTI’s price is expected to survive in the range of US $ 60-US $ 70 this month.
OPEC+ previously agreed to increase production of 547 thousand barrels per day starting September.This decision ended their latest production pruning earlier than the plan.
OPEC+ which controls about half the world’s oil supply has cut production over the past few years to maintain prices.However, this year, the group accelerated the increase in production to reclaim the lost market share.
On the other hand, the pressure from the United States of India to stop the purchase of oil from Russia is feared to disrupt the flow of global supply, especially if Indian refineries begin to look for alternative sources and Russian oil must be diverted to other markets.
On Tuesday, Trump again threatened to impose a higher tariff for Indian items in the next 24 hours in return for the purchase of Russian oil.
He also said that the decline in energy prices could pressure Russian President Vladimir Putin to end the war in Ukraine.
Responding to this, the Indian government called Trump’s threat as a baseless action and confirmed that it would protect its economic interests, deepened trade tensions between the two countries.
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(LDY/SFR)
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