Oil markets showed unexpected stability on Wednesday, holding ground despite intensifying geopolitical strains. Brent crude traded around $67.2 a barrel and WTI near $63.3, both little changed after yesterday’s volatile swings.
The apparent calm masks a high-stakes balancing act. Ukrainian drone strikes on Russian refineries have disrupted capacity, raising fears of fresh supply shocks. Yet Moscow has sought to cushion the impact, ramping up western port exports by roughly 200,000 barrels per day to reassure buyers. At the same time, the U.S. move to double tariffs on Indian exports, a retaliatory measure tied to New Delhi’s continued reliance on discounted Russian crude, has clouded Asia’s trade outlook, with potential knock-on effects for energy demand.
As of now, prices will remain in the intermediate arena: supported by warfare but held back by retaliatory measures and the deceleration of demand in major markets. Analysts warn that the current tranquility may not last much and political and economic risks may tip the scales on one side or the other.
