Oil rises more

Written by Arate Somasekhar

Houston (Reuters) -Oil prices stabilized by 1 % on Wednesday, as investors focused on developments on the deadline of US President Donald Trump to Russia to end the war in Ukraine and his introductory threats for countries that traded oil.

Brent crude contract, September, which was scheduled to be expired on Thursday, closed 73 cents, 1.01 %, above 73.24 dollars. Raw in West Texas Intermediate increased by 79 cents, or 1.14 %, at $ 70, where investors greatly ignore the US -mixed statements of crude stocks and fuel.

Both decades decreased approximately 1 % early in the day.

Brent October contract stabilized 79 cents, or 1.1 % higher, at $ 72.47.

On Tuesday, Trump said he would start imposing measures on Russia, such as 100 % secondary tariffs on commercial partners, if he did not make progress in ending the war in Ukraine within 10 to 12 days, and moving from the deadline for 50 days.

A 25 % tariff imposed on the goods imported from India from August 1, along with an unlimited penalty for the purchase of Russian weapons and oil. The United States also warned of China, the largest Russian oil buyer, that it may face a huge tariff if it continues to buy.

JP Morgan analysts wrote that although China was unlikely to comply with US sanctions, India indicated that it would do so, which may affect 2.3 million barrels per day (BPD) of Russian oil exports.

“Traders seem to focus more on the definitions (related to Russia) and compliance is expanded by India as positive towards crude prices,” Dennis Kisler, First Vice President for Bok Financial.

Meanwhile, US crude stocks increased by 7.7 million barrels.

American gasoline shares decreased by 2.7 million barrels, exceeding expectations of 600,000 barrels. The distillation stocks, which include diesel and heating oil, increased by 3.6 million barrels, which are higher than expectations to build 300,000 barrels.

American economic growth also recovered more than expected in the second quarter, but this measurement is largely exaggerated from the health of the economy, as the decrease in imports represented the largest part of the improvement and the local demand increased its slowdown in 2-1/2 years.

The Federal Reserve maintains fixed interest rates in a division decision that has not given little reference to borrowing time, borrowing costs may be reduced. Federal Reserve Chairman Jerome Powell also added that it is too early to determine whether the central bank will reduce the interest rate in September, and the financial markets expect.

(I participated in the reports of Seher Daeen in the reports of Londonadditional by Mohi Narayan in New Delhi and Coleen Hao in Beijing; edited by David Godman, Emilia Citol-Matris, David Gregorio and Margoreta Choi)