Oil prices remained stable on Wednesday, as traders awaited details on impending U.S. tariffs that could impact global trade and crude demand. Brent crude is trading at $74.35 per barrel following Tuesday's dip, while West Texas Intermediate hovered above $71 per barrel
President Donald Trump is set to announce new tariffs later in the day, with measures expected to take immediate effect. While details remain unclear, proposals include a tiered tariff system and a reciprocal trade plan. Market analysts caution that such tariffs could dampen economic growth, potentially affecting oil demand.
Meanwhile, geopolitical tensions add further complexity. The U.S. is considering additional sanctions on Russia, targeting its energy exports, while also intensifying pressure on Iran. Trump recently threatened stricter measures on Iranian oil exports and warned of military action if Iran fails to negotiate its nuclear program.
Supply concerns persist as U.S. crude inventories rose by 6 million barrels last week, according to the American Petroleum Institute. Levels at Cushing, Oklahoma, climbed by 2.2 million barrels, marking the largest build since January 2023. Gasoline inventories declined by 1.6 million barrels, while distillate stocks saw a slight dip of 11,000 barrels. The Energy Information Administration is set to release official inventory data later on Wednesday.
Looking ahead, investors anticipate Thursday’s OPEC+ virtual meeting, where ministers from key oil-producing nations are expected to approve a production increase starting in May. This decision will play a crucial role in shaping market sentiment amid ongoing geopolitical and economic uncertainties.