Oil prices slipped slightly Wednesday morning as the market reacted to President Donald Trump’s latest deadline for Russia to end its war in Ukraine.
Trump's Ultimatum
Trump, speaking Tuesday from the White House, shortened his original 50-day ultimatum to just 10 to 12 days. He stated, "If they’re not moving toward peace, we’re done waiting."
Market Impact
By 08:39 GMT, Brent crude for the October contract dropped 17 cents to $71.52 per barrel. U.S. West Texas Intermediate followed closely, down 11 cents to $69.12. Trump's focus is on countries that continue to import Russian oil, particularly China and India. Analysts at JP Morgan noted that up to 2.3 million barrels per day of Russian oil could be affected if India complies with the threat.
Fed Expectations
Meanwhile, U.S. bond markets remained mostly flat as investors awaited the Federal Reserve’s interest rate announcement. Deutsche Bank analysts indicated that Fed Chair Jerome Powell "is unlikely to remove a September rate cut from consideration."
Overall, recent developments in the oil market reflect the reactions of participants to ongoing geopolitical shifts and economic announcements, with Trump's actions and the Fed's decisions closely monitored by investors.
