Oil prices eased from a two-week high during Wednesday’s Asian trading session following data showing a significant rise in U.S. crude oil inventories. Meanwhile, investors remained on edge ahead of further tariff announcements expected from President Donald Trump.
At 21:44 ET (01:44 GMT), September Brent crude futures dipped 0.3% to $69.91 per barrel, while West Texas Intermediate (WTI) futures lost 0.4% to $68.10 per barrel. Both benchmarks had surged to their highest levels in two weeks on Tuesday, supported by concerns over supply interruptions caused by recent attacks on Red Sea shipping routes by Houthi militants.
According to a Reuters report on Tuesday, four crew members on the Liberian-flagged, Greek-operated bulk carrier Eternity C were killed in a coordinated drone and speedboat assault off Yemen’s coast.
U.S. crude stockpiles rise unexpectedly
The American Petroleum Institute (API) reported an unexpected jump of 7.1 million barrels in U.S. crude oil inventories for the week ending July 4, well above the forecasted draw of 2.8 million barrels. This follows a minor increase of 0.68 million barrels the prior week.
Gasoline stocks fell by 2.2 million barrels, and distillate inventories dropped by 800,000 barrels. These figures point to slowing demand and potential oversupply concerns within the U.S. market.
Market participants are awaiting the official Energy Information Administration (EIA) report due later Wednesday. Should the EIA confirm the API’s numbers, it would represent the largest weekly crude build since January.
Trump announces new tariffs on copper and more to come
President Trump revealed plans on Tuesday to impose a 50% tariff on imported copper, with additional tariffs on semiconductors and pharmaceuticals expected soon.
Earlier, he sent official tariff notices to 14 countries, signaling that increased duties would take effect from August 1. The notices included a 25% tariff on all imports from Japan and South Korea, while some countries could face tariffs as high as 40%.
On Tuesday night, Trump tweeted: “We will be releasing a minimum of 7 Countries having to do with trade, tomorrow morning, with an additional number of Countries being released in the afternoon.” Details remain scarce, fueling investor caution amid fears of escalating trade tensions.