Crude Oil Prices Recover Slightly from 5-Week Low Amid Geopolitical Tensions

Crude oil prices saw a mild recovery on Wednesday in Asian trading hours after falling to a five-week low earlier. The slight increase came as the United States signalled tougher sanctions against countries buying Russian oil, including India and China.

Crude Oil Prices Edge Up

Brent crude oil futures for October rose by 0.5% to $68.00 per barrel, while U.S. West Texas Intermediate (WTI) crude futures also climbed 0.5% to $64.53 per barrel. The rise offered some relief to investors after a sharp fall in oil prices in recent days.

However, news reports suggest that this recovery is still fragile, with larger concerns weighing on the market, such as high supply and weak demand.

Trump Threatens Tariffs on India and China

Adding to the tension, U.S. President Donald Trump has threatened to impose more tariffs on India for continuing to buy oil from Russia. He already placed 25% tariffs last week and said more are likely this week. Trump argues that India's oil purchases help fund Russia’s war in Ukraine.

India, which imports about 80% of its crude oil needs, has rejected Trump’s criticism and said it will continue buying from Russia. Trump also targeted China, another major buyer of Russian oil, with similar tariff warnings.

Read more: How Much Crude Oil Has India Purchased from the United States in H1 FY26?

These threats could lead to a tighter global oil supply if India and China reduce or stop their purchases, which may support oil prices in the coming days.

Signs of Peace in the Russia-Ukraine Conflict

There are also signs that the Russia-Ukraine conflict might de-escalate. According to Bloomberg news reports, Moscow is considering a pause in air strikes to reduce tensions and avoid further U.S. sanctions. U.S. Special Envoy Steve Witkoff is also expected to visit Moscow for talks.

Conclusion

Oil prices may have found some support in recent times, but worries about oversupply and weak global demand remain strong. Investors should stay alert and watch the situation closely. If you're looking to invest in commodities or oil-linked assets, make sure your demat account is active and updated for easy access to market opportunities.

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