Fifth Straight Day Of Oil Losses As Russia's Deadline To Cease Ukraine Hostilities Nears

Meanwhile, Trump follows through on his vow to penalize Russia-friendly India: File Image/Pixabay

A fifth straight session of crude price losses for two key benchmarks was logged on Wednesday, as traders continued to debate whether Moscow would reach a peace agreement with Ukraine and avoid new sanctions threatened by U.S. president Donald Trump.

They ultimately sent prices downward  based on Russia stating that U.S. envoy Steve Witkoff held "useful and constructive" talks with president Vladimir Putin on Wednesday, two days before the expiration of Trump's deadline for a ceasefire.

However, this did not equate in the real world to an easing of geopolitical tension: Russian drone strikes against Ukraine continued, with dozens of drones attacking a gas compressor station in Ukraine's Odesa region that facilitates Azerbaijani gas transit to Europe.

Brent settled down 75 cents at $66.89 per barrel, while West Texas Intermediate settled down 81 cents at $64.35.

Trump added to the analytical debate on Wednesday by stating that "if energy goes down low enough, Putin's going to stop killing people……if you get energy down another $10 a barrel, he's going to have no choice, because his economy stinks."

Numerous reports have Trump meeting directly with Putin as early as next week.

Meanwhile, preliminary findings show that in the U.S., crude stockpiles fell 4.2 million barrels last week, although oil reserves at the key hub in Cushing, Oklahoma, rose, along with distillate inventories.

Bloomberg stated, "Brent's prompt spread — the difference between its two nearest contracts — was 69 cents a barrel in backwardation, compared with more than $1 a month ago….while still a bullish pattern, with near-term prices above the next in line, the trend suggests a weakening."

Also on Wednesday, while the mainly anti-Trump mainstream press doubted he would follow through on his get-tough stance with Russia, Trump in the meantime followed through on his vow to penalize India for purchasing Russian oil.

The brash billionaire signed an executive order enacting an additional 25 percent tariff on Indian goods, thereby increasing the total tariff rate on Indian exports to the U.S. to 50 percent, the highest level for any country under current U.S. policy.

A White House statement said in part that India's oil imports "undermine U.S. efforts to counter Russia's harmful activities."