Oil prices rose on Wednesday due to a larger-than-expected drop in U.S. crude inventories and concerns over new U.S. tariffs on India. Brent crude futures were up 1.2% at $68.05, and WTI crude futures gained 1.4% to $64.15 after both contracts fell by over 2% on Tuesday.

U.S. crude inventories fell by 2.4 million barrels to 418.3 million barrels last week, exceeding analysts’ expectations. Gasoline stocks dropped by 1.2 million barrels, and distillate stockpiles fell by 1.8 million barrels, according to the Energy Information Administration.

President Trump’s decision to double tariffs on Indian imports to 50% due to Russian oil purchases took effect Wednesday. There is concern about potential supply disruptions, leading some traders to hold off on new positions, according to UBS analyst Giovanni Staunovo.

Recent attacks on energy infrastructure between Russia and Ukraine have raised concerns about supply disruptions. Russia launched a drone attack on Ukrainian energy infrastructure, while Ukraine retaliated by targeting Russian oil refineries.

New York Fed President John Williams hinted at potential interest rate cuts, which could boost economic growth and oil demand. Policymakers will assess upcoming data before deciding on a rate cut at the September meeting.

Read more at Yahoo Finance: Oil edges up on US crude stocks drop, impact of US tariffs on India