Oil prices dropped around 2% on Tuesday, reversing the previous day’s gains, as investors closely monitored the Ukraine conflict and its impact on Russian fuel supplies. Brent crude fell by $1.28, or 1.9%, to $67.52 per barrel, while West Texas Intermediate (WTI) slipped $1.30, or 2%, to $63.50. Monday’s surge was driven by concerns over disrupted supply following Ukrainian attacks on Russian energy infrastructure and looming U.S. sanctions on Russian oil.
Energy analysts at Ritterbusch and Associates noted that U.S. tariffs on India—one of the largest importers of Russian crude—could be raised to 50%, intensifying restrictions on Russia’s exports, already hindered by recent refinery strikes. These developments have contributed to fuel shortages in parts of Russia.
To offset refinery disruptions, Russia plans to boost crude exports from western ports by 200,000 barrels per day in August. Meanwhile, U.S. President Donald Trump has warned of potential sanctions if peace talks with Russia stall. Although talks on energy cooperation took place during recent peace negotiations, analysts expect oil markets to remain volatile. Brent may stay within a $65–$74 trading range in the near term.
