Oil prices stabilized on Wednesday after a sharp decline the previous day, as investors monitored the Ukraine conflict and assessed a drop in U.S. crude inventories alongside fresh U.S. tariffs on India. U.S. Special Envoy Steve Witkoff announced he would meet Ukrainian officials in New York this week and confirmed ongoing discussions with Russia aimed at ending the war.
Prices were supported by the American Petroleum Institute’s weekly report, which indicated declines in U.S. crude, gasoline, and distillate stockpiles. The official inventory data is expected at 1430 GMT.
As of 1045 GMT, Brent crude fell by 18 cents (0.3%) to $67.04 a barrel, while West Texas Intermediate (WTI) dropped 14 cents (0.2%) to $63.11. Both benchmarks had declined over 2% on Tuesday. Markets also reacted to President Donald Trump’s decision to double tariffs on Indian imports to 50%, in response to India’s continued Russian oil purchases.
Although no major supply disruptions have occurred, uncertainty about future U.S. actions has made traders cautious. UBS analyst Giovanni Staunovo noted investors are holding back due to this unpredictability. Meanwhile, Russian drone-hit refineries have increased crude exports, adding 200,000 bpd from western ports in August.
