Futures point higher; AMD reports; Novo to cut costs - what’s moving markets
Investing.com-- Oil prices rose in Asian trade on Wednesday, recovering mildly from a five-week low hit in the prior session as the prospect of tighter U.S. sanctions against the buyers of Russian oil offered some support.
But oil’s gains were limited, while the recovery also appeared fragile amid sustained concerns over increased OPEC+ production and weak global demand.
Brent oil futures for October rose 0.5% to $68.0 a barrel, while West Texas Intermediate crude futures rose 0.5% to $64.53 a barrel by 21:50 ET (01:50 GMT).
Oil was also encouraged by API data showing a substantially bigger-than-expected draw in U.S. oil inventories last week-- 4.2 million barrels, against expectations for a 1.8 million barrel draw.
Trump threatens India with tariffs over Russian oil buying
U.S. President Donald Trump on Tuesday kept up his threats of increasing trade tariffs against India, over New Delhi’s continued purchase of Russian oil.
Trump said he will impose additional tariffs on India this week, after last week slapping the country with 25% reciprocal tariffs.
The U.S. president largely chided New Delhi’s continued purchases of Russian oil, which he claimed were funding Russia’s war with Ukraine.
India has rejected Trump’s criticism, with reports suggesting that New Delhi will continue to buy Russian oil in the near-term. India is heavily dependent on oil imports, shipping in roughly 80% of its crude requirements.
Trump also threatened China, another major buyer of Russian oil, with higher tariffs.
China and India stopping their purchase of Russian oil stands to tighten global supplies, with this notion offering oil prices some support.
Still, there appeared to be some progress towards deescalation in the Russia-Ukraine conflict. Bloomberg reported that Moscow was considering options, including a potential pause on air strikes, to stave off U.S. tariffs. U.S. Special Envoy to the Middle East Steve Witkoff is also set to visit Moscow this week.
Oil nurses steep losses on oversupply fears, demand jitters
But despite Wednesday’s gains, oil prices were nursing steep losses in recent sessions.
Crude’s latest downturn came after the Organization of Petroleum Exporting Countries and allies agreed to increase production by 547,000 barrels a day in September.
The cartel has steadily increased production this year, drumming up concerns of oversupplied markets in the second half of 2025.
A swathe of weak economic readings from the U.S. and China, released in the past week, also drove up fears of sluggish growth and slowing demand in the world’s biggest oil consumers.