Oil prices fall on Trump's India tariff threats, OPEC+ output
Yahoo Finance Senior Reporter Ines Ferré outlines what investors need to know.
To watch more expert insights and analysis on the latest market action, check out more Market Domination.
Oil futures are sliding this coming against the backdrop of OPEC plus hiking oil production and potential supply disruptions linked to Russia. For more, bring in Yahoo Finance senior market reporter, Ines Ferre. Ines.
Yeah, Josh, we saw Brent today down more than 1 and a half percent, and WTI also down almost 2%. This is because of that September output hike from OPEC Plus. Now, Goldman Sachs says that they do not expect any more hikes from OPEC Plus. This pretty much now unwinds the 2.2 million barrels per day, those voluntary cuts that they had installed over the last couple of years. So, for now, this should be the last output hike. As far as Brent futures are concerned and where they're going for the rest of the year, well, Goldman Sachs is saying that they're going to go lower. They're predicting $64 per barrel for Brent by the fourth quarter of this year. So we're about $4 away from that. And also, as far as 2026 is concerned, they're predicting that Brent is going to go down to $56 per barrel. They're talking about more supply coming into the market with non-OPEC members that have new production coming on, like US shale, like Brazil, also Norway, as well. So that really limits the amount of more output hikes that OPEC Plus could do without creating a surplus, Josh.
And Ines, we also saw some headlines about India's oil purchases from Russia. What can you tell us about that?
Yeah. So, well, President Trump has really been pressuring India to stop purchasing oil from Russia. Essentially, basically saying that they are funding Russia, Russia's initiatives in Ukraine, in the war in Ukraine. So, Trump saying that he will substantially increase tariffs on India. But Indian Prime Minister Modi has said they're going to continue buying Russian oil. He also said that Indians should purchase domestic products. I will say that what Wall Street is looking at is if Russian production were to somehow be compromised, or if that would be decreased, then you would see an upside risk to oil prices. In this case, India is kind of stuck in this sort of push that Trump has been doing in order to end the war in Ukraine, and him using tariffs and pointing to oil purchases because India has been a big buyer of Russian oil since the war in Ukraine started.
All right. Thank you, Ines. Appreciate it.
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