Oil markets held firm near recent highs in early Thursday trading, as investors weighed the implications of U.S. President Donald Trump’s escalating tariff campaign and a surprise jump in domestic crude inventories that signaled possible demand weakness.
Brent crude futures for September delivery dipped slightly by 0.1% to $70.09 a barrel as of 21:55 ET (01:55 GMT), while West Texas Intermediate (WTI) slipped 0.2% to $68.23. Both benchmarks remained close to two-week peaks touched earlier in the week, largely supported by renewed conflict risks in the Middle East—particularly Houthi-led disruptions in the Red Sea.
Trump Targets Copper and Brazil with Tariff Hikes
President Trump widened his trade offensive on Wednesday, unveiling a 50% tariff on copper imports set to take effect on August 1. The move, he said, is designed to “boost the domestic copper industry.”
In a separate announcement, the White House confirmed it would hike tariffs on Brazilian goods to 50%, up from 10%, following a diplomatic spat with President Luiz Inácio Lula da Silva. The Brazilian leader, speaking at a BRICS summit, had referred to Trump as an “unwanted emperor.” In response, Lula issued a warning: “any new tariffs would be met with retaliatory actions.”
In recent days, the U.S. has begun dispatching tariff notifications to major trade partners, including 25% levies on goods from Japan and South Korea, heightening fears of a broader global trade conflict. Such developments have raised red flags for oil investors already grappling with tight supply dynamics and concerns about future consumption.
U.S. Crude Stocks Jump Unexpectedly
Meanwhile, data released by the U.S. Energy Information Administration on Wednesday showed a surprise build of 7.07 million barrels in crude inventories for the week ending July 4—the largest rise since January. Analysts had anticipated a drawdown of around 2 million barrels, with the deviation attributed to reduced refinery operations during the holiday period.
Still, gasoline data offered a bright spot: inventories dropped by 2.65 million barrels, pointing to strong demand during the July 4 celebrations.
This latest supply data lands as OPEC+ prepares to increase output by 548,000 barrels per day in August, a decision that could tip market sentiment toward oversupply in the near term.
Despite the short-term uncertainty, oil prices remain supported by geopolitical tensions and broader risk sentiment, with traders cautiously watching for further signals from both the White House and global producers.
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