Oil prices fell slightly on Wednesday after rising to two-week highs in the previous session. This was due to investors awaiting new developments amid Trump's tariffs and expectations of rising crude oil inventories in the United States, UNN reports, citing Reuters.
Details
Brent crude futures fell 7 cents, or 0.1%, to $70.08 a barrel by 04:00 GMT. US West Texas Intermediate crude fell 8 cents, or 0.1%, to $68.25 a barrel.
The latest postponement of US President Donald Trump's tariffs has given some hope to major trading partners Japan, South Korea, and the European Union that tariff relief deals can still be reached, while unsettling some smaller exporters like South Africa and leaving companies without clear guidance on how to proceed.
Trump moved the previous deadline from Wednesday to August 1, a date he called final on Tuesday, stating: "There will be no extensions."
Trump added that he would impose 50% tariffs on imported copper and would soon impose long-threatened tariffs on semiconductors and pharmaceuticals, escalating a trade war that has rattled markets worldwide.
Investors are constantly dealing with "tariff headlines" and the potential consequences of their negative impact on global trade. Given the uncertainty and potentially gloomy economic growth ahead, it's surprising how the energy complex can still rise, given the seemingly endless pressure of "bearish headlines" constantly increasing pressure.
There are concerns that tariffs could curb oil demand, and while there was strong travel demand during the US July 4 holiday weekend, data from industry sources showed a possible increase in US crude oil inventories of about 7.1 million barrels, although fuel product inventories were lower.
Overnight API figures were bearish for oil
Official data from the US Energy Information Administration is due to be released today at 14:30 GMT.
As for long-term supply, the US will produce less oil in 2025 than previously expected, as lower oil prices have prompted US producers to slow activity this year, the Energy Information Administration predicted in a monthly report on Tuesday.
The world's largest oil producer is forecast to produce 13.37 million barrels of oil per day in 2025, compared to last month's forecast of 13.42 million barrels per day, the EIA said in its short-term report.
Addition
Volumes of Russian oil seaborne supplies fell to 3.12 million barrels per day, the lowest figure since February 2025. This reduction is explained by a faster increase in refinery processing compared to production.