#crude-oil

#crude-oil

U.S. President Donald Trump issued several pipeline permits on Wednesday, including one for the construction of a new pipeline, to facilitate the transportation of crude oil and petroleum products between the U.S. and Canada.

Ust-Luga, a key oil-export outlet in Russia's west, stopped at the end of March as Ukraine stepped up attacks on energy infrastructure along the Baltic coast.

India has not received a cargo from Tehran since May 2019, following US pressure not to buy Iranian crude. New Delhi has turned to Tehran for energy supplies as the Iran war rattles supply.

The Energy Select Sector SPDR Fund (XLE) is the most widely held energy ETF in the U.S., with roughly $38 billion in net assets, spanning the full energy value chain.

The S&P 500 index was down 0.1% as of 12:15 p.m. ET, the Dow Jones Industrial Average was down 0.2%, and the Nasdaq composite was down less than 0.1%. Institutional investors are largely closed out of their positions for the year. The S&P 500 has climbed nearly 18% this year, helped by the deregulatory policies of the Trump administration as well as investor optimism about the future of artificial intelligence.

Crude oil prices were volatile and retreated following a sanctions-driven surge on Tuesday. The market could remain sensitive to the possibility of fresh US sanctions and is assessing the measures targeting vessels involved in Iran's oil shipping network. Traders could also remain cautious ahead of Sunday's OPEC+ meeting on September 7th. The consensus anticipates that the eight members participating in voluntary cuts to maintain current levels, putting a pause to their production increases and potentially anchoring prices within the established range.

The prevailing softness reflects mounting concerns regarding global demand in the context of escalating trade tensions between the United States and its trading partners, including the European Union.

Crude oil futures are struggling to move above $67 due to mixed signals in the market, reflecting strong refinery activity and inventory issues.