LONDON — Oil prices remained stable on Wednesday, August 27, 2025, with Brent crude hovering at $67.13 per barrel and West Texas Intermediate (WTI) near $63.17, as markets navigated a complex web of geopolitical tensions and economic pressures. According to Reuters, the steady prices follow a sharp 2% drop on Tuesday, reflecting investor caution over the ongoing Ukraine war and new U.S. tariffs on Indian goods, which took effect at midnight EDT.
The Ukraine conflict continues to inject volatility into energy markets, with Ukrainian drone strikes on Russian refineries forcing Moscow to boost crude exports by 200,000 barrels per day from western ports in August, per industry sources. “A lot of uncertainty over how the Ukraine stalemate might be resolved portends volatility for crude, but likely in a relatively small range,” noted Vandana Hari, founder of Vanda Insights, in a statement to Reuters. U.S. special envoy Steve Witkoff, addressing the crisis on Fox News’ Special Report on Tuesday, confirmed meetings with Ukrainian officials in New York this week, adding, “Washington is also in talks with Russia as it seeks to end the war.”
Adding to market jitters, the U.S. imposed a 50% tariff on Indian exports, effective Wednesday, in response to India’s increased purchases of discounted Russian oil. President Donald Trump, speaking at a White House briefing, accused India of “funding Moscow’s war machine,” a charge Indian officials rejected as “unfair.” Indian Oil, the country’s largest refiner, plans to continue Russian crude purchases based on economic viability, despite the tariffs. Key market dynamics include:
- Brent crude down 9 cents, WTI down 8 cents after Tuesday’s 2% slide.
- India’s Russian oil imports hit 1.73 million barrels daily from January to July.
- Ukrainian attacks cut Russian refinery capacity by 10%, boosting exports.
Analysts remain skeptical about the tariffs’ impact. “The secondary tariff has not been enough to stop India from buying Russian oil,” said Warren Patterson, head of commodity strategy at ING, noting that markets will closely monitor India’s oil flows. With the OPEC+ ministerial meeting set for Saturday, traders are bracing for potential shifts in production policy that could further influence prices, keeping oil markets on edge amid unresolved geopolitical and trade tensions.
Source: Reuters
