Crude Oil Eases As Traders Reassess Russia-Ukraine Supply Impact, Await US Inventory Reports

Joseph Dahrieh

Crude oil prices pulled back on Tuesday after four consecutive days of gains, as traders reassessed the impact of recent heightened tensions between Russia and Ukraine. The prior rally had been driven by concerns over supply interruptions from the Russia-Ukraine conflict. Anticipation of further US sanctions on Russian oil had also contributed to the recent rally.

Even with today’s retreat, the market remains sensitive to geopolitical developments and policy shifts. US President Trump’s threat of tariffs on Indian goods, due to continued purchases of Russian oil, has kept traders cautious. Indian exporters now face US duties of up to 50%, potentially impacting global oil flows.

Looking ahead, market participants await inventory data, with the API and the EIA reports playing a big role in market expectations. These reports could set the tone for crude prices. A further draw in US nationwide crude stocks could support prices, while a surprise build could weigh on the market.

Dahrieh is Managing Principal at Tickmill