Oil Prices Dip from Three-Week High Amid Russian Supply Risks: What This Means for Investors and Businesses in Oman
LONDON — Oil prices fell by more than 1% on Tuesday, after nearly a 2% surge in the previous session, as traders closely watched developments in Ukraine and the risk of disruptions to Russian fuel supplies.
By 1040 GMT, Brent crude dropped $1.08, or 1.57%, to $67.72 per barrel, having reached its highest level since early August earlier in the session. West Texas Intermediate (WTI) crude declined $1.13, or 1.74%, settling at $63.67 per barrel.
UBS analyst Giovanni Staunovo attributed the modest decline to risk aversion amid falling equity markets but emphasized that geopolitical issues remain a key influence, especially potential escalations between the US and Russia.
Monday’s price rally was driven by concerns over supply following Ukrainian strikes on Russian energy infrastructure and the prospect of additional US sanctions targeting Russian oil. Attacks on Ukraine’s gas and power facilities have also hampered Moscow’s oil processing and export capabilities, leading to gasoline shortages in some Russian regions.
US President Donald Trump reiterated his threat to impose sanctions on Russia if progress toward a peace agreement is not achieved within two weeks. Meanwhile, US and Russian officials reportedly discussed energy-related deals during recent peace talks.
PVM Oil Associates analyst Tamas Varga commented that, amid uncertainties stemming from the Ukraine conflict and tariff issues, investors remain cautious about committing to a long-term market direction. He suggested Brent crude prices could continue to trade within a $65 to $74 range in the medium term.
Additionally, looming US tariffs on India—one of Russia’s largest crude buyers—for its ongoing purchases of Russian oil are creating further pressure on the market. Potential tariff rates could reach up to 50%, among the highest imposed by Washington.
— رویترز
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The current volatility in oil prices amid geopolitical tensions highlights significant risks and uncertainties for Oman’s energy sector and export revenues. Businesses should brace for fluctuating oil income and consider diversifying investments to mitigate exposure, while entrepreneurs and investors need to strategically monitor global developments, especially US-Russia relations and sanction policies, to capitalize on price movements and supply shifts in the medium term.
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