Oil prices edge up on Russia supply worries, US-India trade deal

Oil prices edged up on Tuesday after dropping more than 4% a day before, on worries over supply as Russia continued attacks on Ukraine and hopes an agreement between the U.S. and India to slash tariffs could boost global demand.

Brent futures were up 67 cents, or 1.0%, at $66.97 per barrel at 11:23 a.m. EST (1623 GMT), while U.S. West Texas Intermediate (WTI) crude rose 76 cents, or 1.2%, to $62.90.

On Monday, both crude benchmarks closed at their lowest since January 26.

U.S. President Donald Trump’s move to slash tariffs on Indian imports lifted sentiment among exporters and policymakers even as details of the agreement remained scant.

Trump announced a trade deal with India on Monday to cut tariffs to 18% from 50% in exchange for New Delhi halting Russian oil purchases and lowering trade barriers. India is one of the world’s biggest economies and oil importers.

While the deal might appear bullish for oil, “the near-term impact will likely be on a further discount on Russian crude barrels that is unlikely to affect exit of shadow cargoes into the world market,” energy advisory firm Ritterbusch and Associates said.