Oil prices stabilized on Wednesday following a decline in the prior session, driven by apprehensions that new U.S. tariffs, expected to be announced later in the day, could exacerbate a global trade conflict, potentially constraining crude demand. The announcement of tariffs by President Trump is set to occur, concurrently with heightened sanctions on Iran and the implications of threats to Russian oil, both of which are exerting pressure on market dynamics.
Oil prices found a degree of stability on Wednesday, as concerns mounted over potential new U.S. tariffs and the likelihood of intensifying trade disputes that may impact global crude demand.Brent futures experienced a decline of 2 cents, settling at $74.47 per barrel by 0016 GMT, following a 0.4% decrease on Tuesday. U.S. West Texas Intermediate crude futures experienced a modest increase of 1 cent, reaching $71.21, following a decline of 0.4%. On Monday, prices reached their peak level in five weeks.
The White House announced on Tuesday that President Donald Trump is set to implement new tariffs on Wednesday, yet it refrained from disclosing specifics regarding the magnitude and extent of these trade barriers. For several weeks, Trump has promoted April 2 as a “Liberation Day,” a date that could introduce new tariffs likely to disrupt the global trade framework.
The declines were counter balanced by U.S. President Donald Trump’s threats to implement secondary tariffs on Russian oil, alongside an escalation of sanctions on Iran on Monday, which aligns with his administration’s “maximum pressure” strategy aimed at reducing its exports. On Sunday, Trump issued a warning of potential “bombing” actions against Iran should the nation fail to reach an agreement regarding its nuclear weapons program.
Furthermore, U.S. oil fuel inventories presented a nuanced perspective on the dynamics of supply and demand from the leading producer and consumer globally. In the week concluding March 28, U.S. crude oil inventories experienced an increase of 6 million barrels, as reported by sources referencing the American Petroleum Institute. According to sources, gasoline inventories experienced a decline of 1.6 million barrels, while distillate stocks saw a slight reduction of 11,000 barrels.
Later on Wednesday, the Energy Information Administration is set to release official data regarding U.S. crude oil inventories. Market participants are anticipating Thursday’s meeting, where OPEC+ ministers from eight nations, currently in the process of incrementally increasing oil output, are set to convene online. Reports suggest that they are poised to endorse an additional rise in production starting in May, according to sources within the producer group as relayed by Reuters.