Oil Retreats from Three-Week High Amid Russia Supply Concerns

PUKMEDIA

Oil prices.

Oil prices fell on Tuesday, 26 August 2025, after surging nearly 2% in the previous session, as traders weighed ongoing developments in the Ukraine conflict and potential disruptions to Russian fuel exports.

According to Reuters, Brent crude was down 51 cents, or 0.7%, at $68.29 a barrel by 0810 GMT, after reaching its highest level since early August in the previous session. West Texas Intermediate (WTI) crude fell 57 cents, or 0.9%, to $64.23.

The previous day’s rally was driven largely by supply concerns, following Ukrainian strikes on Russian energy infrastructure and the possibility of further U.S. sanctions on Russian oil. Ukraine’s attacks have disrupted Moscow’s oil processing and exports, creating gasoline shortages in some regions.

Meanwhile, U.S. President Donald Trump reiterated his threat to impose sanctions on Russia if progress toward a peace deal is not made within the next two weeks. However, sources told Reuters that U.S. and Russian officials have held discussions on potential energy deals during negotiations aimed at resolving the conflict.

In the medium term, analysts expect Brent crude to remain in a $65–$74 trading range, reflecting continued uncertainty in supply and demand, according to Reuters.

Additional market pressure stems from the potential U.S. tariffs on India over its continued purchases of Russian crude. India is currently the third-largest buyer of Russian oil, making this a significant factor for global markets, according to Ole Hansen, commodities strategist at Saxo Bank.



PUKMEDIA