Oil prices steady as tariff impact are to unfold

August 27, 2025 (MLN): Oil prices held largely flat on Wednesday after a decline in the previous session, as traders weighed the impact of looming U.S. tariffs on India in retaliation for its continued purchases of Russian crude.

Brent crude futures decreased a little by $0.1, or 0.15%, to $67.12 per barrel.

West Texas Intermediate (WTI) crude futures fell by $0.17, or 0.27%, to $63.08 per barrel by [12:17 pm] PST.

U.S. has enforced an additional 25% tariff on Indian exports, effectively doubling duties to 50%. The move marks one of the steepest trade penalties imposed by the U.S. in recent years.

President Donald Trump has argued the hike is a direct response to India’s increased intake of Russian oil, which surged after Moscow’s invasion of Ukraine.

Western sanctions forced Russia to sell crude at discounts, making it attractive for buyers such as India.

Indian refiners had briefly scaled back purchases following the tariff declaration and fresh EU sanctions on Nayara Energy, a Russia-linked Indian refiner.

Yet state-run companies Indian Oil Corp and Bharat Petroleum have since resumed orders for September and October cargoes, according to company officials. Indian Oil, the country’s largest refiner, has reiterated it will keep buying Russian supplies if pricing remains favorable.

Meanwhile, the Ukraine conflict continues to disrupt global flows. Drone strikes on Russian refineries have forced several plants to curb operations, leaving Moscow with surplus crude for export.

Russia has revised its August shipment plans from western ports, lifting exports by 200,000 barrels per day compared with earlier schedules. 

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