Oil Prices Stabilize, Market Monitors Trade Tariffs and US Stockpiles
World oil prices have stabilized after four consecutive days of decline. Investors are now focused on developments in trade negotiations between the United States and its trading partners, as well as the latest oil inventory data. The price of West Texas Intermediate (WTI) crude for September delivery edged up 0.3% to $65.44 per barrel in Singapore morning. Meanwhile, Brent crude fell slightly by 0.1% to close at $68.51 per barrel on Wednesday.
US President Donald Trump has stated that he will impose tariffs ranging from 15% to 50% if there is no progress in trade talks before the August 1 deadline. The 15% tariff is already in place for Japan, while the European Union is in the process of reaching an agreement. Meanwhile, EU sanctions against Russia could impact importing countries like India, and the US is also considering purchasing oil from Russia and Iran as part of trade negotiations with China.
On the supply side, US national crude oil inventories fell by 3.2 million barrels last week. However, inventories at the Cushing storage hub—the primary WTI delivery location—actually rose for the third consecutive week. Although diesel inventories increased, they remained at their lowest seasonal levels since 1996. The oil market is currently balancing high diesel demand during the summer and a potential surge in supply from OPEC+, which is increasing production quotas. (ayu)
Source: Newsmaker.id
