Oil steadied after dropping by the most since early August as investors counted down to the imposition of higher US tariffs on India.

The US is due to double tariffs on some Indian goods to 50% in a bid to punish the country for taking Moscow's oil.

Oil has shed more than 10% this year as the US-led trade war fanned worries about demand, and OPEC+ unwound supply curbs at a rapid clip.

Oil steadied after dropping by the most since early August as investors counted down to the imposition of higher US tariffs on India over its purchases of Russian crude.

West Texas Intermediate traded above $63 a barrel, after falling more than 2% in the previous session, while Brent closed above $67. The US is due to double tariffs on some Indian goods to 50% in a bid to punish the country for taking Moscow's oil. With the higher levy set to take effect at 12:01 a.m. Washington time, local refiners still plan to maintain the bulk of their purchases.

The move by Washington — which has refrained from similar action against China, another major buyer of Russian crude — is part of a broader push to try to broker an end to the war in Ukraine. On Tuesday, US President Donald Trump warned of "an economic war" if he could not get Russia's Vladimir Putin and Ukraine's Volodymyr Zelenskiy to end the conflict.

Oil has shed more than 10% this year as the US-led trade war fanned worries about demand, and OPEC+ unwound supply curbs at a rapid clip. That's spurred concerns a glut will form, including an outlook from the International Energy Agency for a record surplus next year. On Tuesday, Trump praised prices close to $60 a barrel, adding that crude would be "breaking that pretty soon."

In the US, an industry report showed nationwide crude stockpiles fell by a modest 1 million barrels last week, along with drawdowns in gasoline and distillates. Official figures are due later Wednesday.

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Prices:

WTI for October delivery added 0.3% to $63.45 a barrel at 7:22 a.m. in Singapore.

Brent for October settlement closed 2.3% lower at $67.22 a barrel on Tuesday.

Source: Bloomberg