Oil prices continued to climb in early Wednesday trading, extending gains from the previous session as supply fears intensified following U.S. President Donald Trump’s warning to Russia over the Ukraine war.
Brent crude futures rose 14 cents, or 0.19%, to $72.65 a barrel at 0048 GMT, while U.S. West Texas Intermediate (WTI) inched up 2 cents to $69.23. Both benchmarks had reached their highest levels since June 20 during Tuesday’s session.
Trump announced plans to impose 100% secondary tariffs on Russia’s trading partners if Moscow fails to show progress toward ending the conflict within 10–12 days, accelerating a previous 50‑day deadline. Analysts at ING noted such measures could significantly disrupt Russian oil sales, as key buyers — especially U.S. allies — may halt purchases. This potential market deficit could allow OPEC+ to gradually ease supply cuts while maintaining price support.
The U.S. has also warned China, Russia’s largest oil customer, about possible penalties, while India has signaled compliance with Washington’s sanctions. JP Morgan estimates this shift could put 2.3 million barrels per day of Russian exports at risk, adding to supply concerns.
Meanwhile, U.S. and EU negotiators reached a trade deal imposing 15% tariffs on European imports, averting a broader trade war and alleviating worries about global economic growth.
In Venezuela, foreign partners of state oil firm PDVSA are still awaiting U.S. authorization to resume operations, which could eventually add supply and temper price pressures.
The heightened geopolitical tensions and shifting trade dynamics have reinforced bullish sentiment in the oil market, with traders closely watching Washington’s next moves and potential responses from major oil consumers like China and India.