Oil prices fall on profit-taking as market weighs up supply risks
The most active Brent crude futures lost 68 cents, or 0.95%, to $71 a barrel by 1103 GMT while U.S. West Texas Intermediate crude slipped by 70 cents, or 1%, to $68.51.
The Brent crude September contract that expires on Wednesday was down 69 cents, or 0.95%, at $71.82.
Both contracts had settled on Tuesday at their highest since June 20.
"Events in the last few days have moved the needle a touch more, but we still appear to be somewhat rangebound and testing the next resistance level," said Rystad Energy analyst Janiv Shah.
Trump had said on Tuesday that he would start imposing measures on Russia, such as secondary tariffs of 100% on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving up from an earlier 50-day deadline.
The United States also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm.
JP Morgan analysts wrote that while China was unlikely to comply with U.S. sanctions, India has signalled it would do so, which could affect 2.3 million barrels per day (bpd) of Russian oil exports.
"Oil prices reacted strongly yesterday, so there is some profit booking," said UBS commodity analyst Giovanni Staunovo, adding that data from the American Petroleum Institute from Tuesday was also bearish for crude.
"Market participants are also taking into account that low prices and secondary sanctions/tariffs on Russia won't work at the same time."
U.S. crude and distillate stocks rose last week while gasoline inventories fell, market sources said, citing API data.
"Depending on the outcome of the U.S.-Russia discussions, tariff implementation and the OPEC+ meeting and announcement on unwinding (of output cuts), the market could see some movement," Rystad's Shah added.
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