Brent plunges as secondary tariffs on India come into effect
The front-month ICE Brent contract has declined by $1.10/bbl on the day, to trade at $66.95/bbl at 09.00 GMT.
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Upward pressure:
Brent’s price has found marginal support from the latest US crude oil stocks data.
US crude oil inventories fell by 974,000 bbls in the week ending 22 August, according to data from the American Petroleum Institute (API).
“Numbers from the American Petroleum Institute overnight were fairly neutral,” remarked two analysts from ING Bank.
A drop in US crude stocks typically indicates higher demand and can lend some support to Brent's price.
Downward pressure:
Brent crude’s price has come under pressure amid building economic tensions between the US and its key trade partner – India.
US President Donald Trump’s 25% secondary tariffs against India came into effect earlier today, taking the total levy on US imports from India to 50%.
India currently faces tariffs on all exports to the US because of its continued purchases of Russian crude oil, according to the White House.
“The market will be watching Russian oil flows to India closely going forward to gauge the impact,” the two analysts from ING Bank added.
By Aparupa Mazumder
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