Oil drops over 1.5% amid trade, geopolitical tensions

Oil drilling rigs

Oil prices slumped today, Aug. 5, amid US trade pressure on India over its imports of Russian crude, in addition to reports that Moscow is considering a partial truce with Ukraine.

Brent crude futures for October delivery fell 1.63%, or $1.12, to $67.64 a barrel at the close of trading.

WTI crude futures for September delivery plunged 1.70%, or $1.13, to $65.16 a barrel.

US President Donald Trump announced today his intention to significantly raise tariffs on India within 24 hours, due to its purchase of oil from Russia and its membership in the BRICS alliance.

Separately, Bloomberg reported, citing informed sources, that Russia is considering presenting an offer to the US president that includes halting airstrikes on Ukraine, in an attempt to avoid secondary sanctions from Washington.

In a related development, informed sources told The Financial Times that the US administration is considering adding more Russian oil tankers from the shadow fleet to the sanctions list, a move that would negatively affect global supplies of oil.