By Daniela Sabin Hathorn, senior market analyst at Capital.com
Oil prices came under renewed pressure on Tuesday as U.S. President Donald Trump threatened tougher tariffs on Russia, raising concerns about the global economic outlook and energy demand. U.S. crude fell 1.4% ahead of the U.S. open, with Trump warning of “very heavy” sanctions should Moscow fail to reach a deal with Kyiv.
The president emphasized that negotiations must be direct, remarking, “It takes two to tango, and they should meet.”
Markets are also watching closely as Washington prepares to impose steep tariffs on India over its Russian oil purchases. Initially set at 25% under reciprocal trade measures, the duty was later raised to 50% and is scheduled to take effect on August 27. These measures risk dampening growth in two major economies, curbing energy demand and adding further downside pressure on crude.
However, supply-side risks remain a counterbalance. Recent Ukrainian strikes on Russian energy infrastructure have heightened concerns over potential disruptions, supporting oil prices despite renewed selling pressure.
WTI has now slipped back below $64 per barrel, failing to extend last week’s bullish streak to a fifth session. The reversal has pushed the RSI back under the midline, suggesting that momentum has turned and the short-term outlook remains fragile.
US crude (WTI) daily chart
Past performance is not a reliable indicator of future results.
