By Pallab Bhattacharya
Newscript, August 18, 2025
Global oil benchmarks edged lower in Monday’s Asian session, extending last week’s pullback amid calming geopolitical jitters. West Texas Intermediate was quoted at $62.64 a barrel, down 0.26 per cent, while Brent crude hovered at $65.60, down 0.37 per cent.
The softening reflects a tentative equilibrium between producers and markets following assurances that Russian crude would not face immediate new sanctions. Traders also point to subdued demand signals from Asia’s industrial economies, with China’s slowing manufacturing output contributing to the bearish tone.
For India, the world’s third-largest oil importer, the dip offers a rare reprieve. The country’s import bill crossed $137bn last year, exposing the economy to exchange rate swings and inflationary pressure. A modest easing in crude levels could temper petrol and diesel prices at the pump, a politically sensitive issue in the run-up to state elections.
Analysts note, however, that volatility is far from over. Supply bottlenecks through the Strait of Hormuz and hurricane season risks in the Gulf of Mexico could quickly reverse sentiment. “The fundamentals remain tight; any dip below $60 is unlikely to hold without a broader slowdown in demand,” an energy consultant in Singapore said.