Oil prices climbed, with West Texas Intermediate (WTI) settling at $70 a barrel, marking its highest level since June 20. This increase extends a recent rally that has pushed prices out of a narrow trading range this month. The surge was primarily driven by former US President Donald Trump's threats to impose a 25% tariff "plus a penalty" on India, criticizing the country for being a major buyer of Russian energy. These threats have sparked investor worries about a potential tightening of global oil supplies.
India's Nayara Energy is reportedly reducing run rates at its refinery as a direct consequence of these proposed measures. This action further exacerbates concerns about supply tightness in the market. The potential penalties on India for its continued reliance on Russian crude are creating significant market uncertainty and contributing to the upward pressure on oil prices.
