Oil Pauses Rally as Markets Weigh Trump’s Ultimatum to Russia

Summary

  • Trump cuts deadline, vows sanctions if Russia makes no progress
  • Supply risks rise over U.S. warning to China over Russian oil
  • China unlikely to comply with U.S. sanctions, analysts say

(Reuters) – Oil prices took a breather in Asian trade on Wednesday after the previous session’s spike of more than 3%, as investors awaited developments from U.S. President Donald Trump’s tighter deadline for Russia to end the war in Ukraine.

Most active Brent crude futures rose 8 cents, or 0.12%, to $71.81 a barrel by 0419 GMT, while U.S. West Texas Intermediate crude gained 8 cents, or 0.12%, to $69.29 a barrel.


Get the Latest US Focused Energy News Delivered to You! It’s FREE:


The Brent crude September contract expiring on Wednesday was up 18 cents at $72.69 per barrel.

Both contracts had settled on Tuesday at their highest since June 20.

On Tuesday, Trump said he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving up from an earlier 50-day deadline.

“The $4 to $5 per barrel of supply risk premium injected in recent days can be expected to be sustained, unless Putin makes a conciliatory move,” said Vandana Hari, founder of oil market analysis provider Vanda Insights.

The United States had warned China, the largest buyer of Russian oil, it could face huge tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm, where the U.S. was holding trade talks with the EU.

JP Morgan analysts said in a note that while China was not likely to comply with U.S. sanctions, India has signalled it would do so, putting at risk 2.3 million barrels per day of Russian oil exports.

The United States and the European Union averted a trade war with a deal for 15% U.S. tariffs on European imports, easing concerns about the impact of trade tension on economic growth and offering support to oil prices.

In Venezuela, foreign partners of state oil company PDVSA are still waiting for U.S. authorisation to operate in the sanctioned country after talks last week, which could return some supply to the market, so easing pressure for prices to rise.

“The oil market is keeping an eye on the U.S. trade deals and talks and on the Fed, but those are marginal influences on sentiment,” Hari added.

Despite President Donald Trump’s objections, the U.S. Federal Reserve is expected to hold interest rates steady at its policy meeting later on Wednesday.

On Tuesday, the International Monetary Fund raised global growth forecasts slightly for 2025 and 2026, but warned the world economy faced major risks, such as a rebound in tariff rates, geopolitical tension and larger fiscal deficits.

Reporting by Mohi Narayan in New Delhi, Additional reporting by Colleen Howe in Beijing; Editing by Muralikumar Anantharaman and Clarence Fernandez

Share This:


More News Articles

 

  • Related Posts

    Top US Refiners See Profits Soar, Step Up Investor Rewards

    By Nicole Jao Top refiners post combined second-quarter profit of $12.6 billion Capital returns to shareholders hit $6.3 billion in second quarter TD Cowen sees Marathon and Valero each repurchasing…

    BofA to Plow $250 Billion Into Critical Infrastructure Projects

    By Paula Seligson and Katherine Doherty Bank of America Corp. unveiled a $250 billion initiative to invest in critical infrastructure across the US over the next year, joining its peers…

    Have You Seen?

    Malaysia Accelerates Energy Transition With Grid Investments, Solar Expansion, And Energy Storage

    • October 13, 2026
    Malaysia Accelerates Energy Transition With Grid Investments, Solar Expansion, And Energy Storage

    Oswal Pumps Announces INR 456 Crore Investment Plan for 1.2 GW TOPCon Solar Cell Manufacturing Facility

    • October 13, 2026
    Oswal Pumps Announces INR 456 Crore Investment Plan for 1.2 GW TOPCon Solar Cell Manufacturing Facility

    Power Grid Acquires Lakadia II Transmission Project For Gujarat’s 7,500 MW Renewable Energy Zone

    • October 13, 2026
    Power Grid Acquires Lakadia II Transmission Project For Gujarat’s 7,500 MW Renewable Energy Zone

    CREA: India Curtailed Over 4% of Its Solar Output in July and August

    • October 12, 2026
    CREA: India Curtailed Over 4% of Its Solar Output in July and August

    Saudi Arabia Insists Energy Supply Remains Resilient

    • October 12, 2026
    Saudi Arabia Insists Energy Supply Remains Resilient

    Oil Jumps 2% as Saudi Attacks and Tanker Strikes Revive Hormuz Fears

    • October 12, 2026
    Oil Jumps 2% as Saudi Attacks and Tanker Strikes Revive Hormuz Fears

    On-site oxygen generation offers alternative supply models for African hospitals

    • October 12, 2026
    On-site oxygen generation offers alternative supply models for African hospitals

    QatarEnergy targets new LNG capacity for 2027

    • October 12, 2026
    QatarEnergy targets new LNG capacity for 2027

    BMI Predicts Brent Crude Will Remain Above $100 for Months

    • October 12, 2026
    BMI Predicts Brent Crude Will Remain Above $100 for Months

    Oil Stuck Between Middle East Escalation and Russia-Ukraine Energy Truce

    • October 12, 2026
    Oil Stuck Between Middle East Escalation and Russia-Ukraine Energy Truce