Oil prices dipped slightly on Wednesday, retreating from two-week highs as traders awaited further clarity on United States trade policy and braced for fresh crude inventory data from the Energy Information Administration (EIA).
By 3 pm AEST (5 am GMT), Brent crude futures had fallen 12 cents, or 0.2%, to US$70.03 per barrel. U.S. West Texas Intermediate (WTI) crude was also down 13 cents, or 0.2%, to US$68.20 per barrel.
The pullback follows gains of around 0.7% in the previous session, which were fuelled by optimism that recent tariff delays by U.S. President Donald Trump might pave the way for trade deals with major partners, including Japan, South Korea, and the European Union.
However, the move created fresh confusion among smaller exporters like South Africa and left companies uncertain about the trajectory of U.S. trade policy.
Trump had postponed the initial tariff deadline to 1 August, declaring on Tuesday that the new date was final.
Alongside the revised timeline, the president announced a 50% tariff on imported copper and signalled that long-mooted duties on semiconductors and pharmaceuticals would soon follow - widening a trade conflict that continues to weigh on global sentiment.
Investors are now turning their attention to U.S. Energy Information Administration (EIA) inventory data, scheduled for release later in the session, for insights into short-term supply trends.
On the longer-term outlook, the EIA revised down its U.S. oil production forecast for 2025. In its latest monthly report, the agency projected that the U.S. - the world’s top oil producer - will produce 13.37 million barrels per day (bpd) next year, down from last month’s estimate of 13.42 million bpd.
