Oil prices traded slightly lower during Asian trade on Wednesday as investors monitored the impact of China’s tariffs on United States energy imports, while renewed pressure from President Donald Trump to eliminate Iranian crude exports offered some support.
By 2:45 pm AEDT (3:45 am GMT), Brent crude futures eased $0.33, or 0.4%, to US$75.87 per barrel, while U.S. West Texas Intermediate (WTI) crude slipped $0.26 or 0.4%, to $72.08.
Oil prices fluctuated on Tuesday, with WTI briefly dropping 3% to its lowest level since 31 December after China announced retaliatory tariffs on U.S. imports of oil, liquefied natural gas, and coal in response to Washington’s levies on Chinese exports.
However, prices rebounded after Trump reinstated the “maximum pressure” campaign on Iran, aiming to curb its nuclear program and cut its crude exports to zero, as he did during his first term.
According to analysts at Goldman Sachs, the effect of China’s tariffs on energy prices is expected to be minimal, as global supply and demand remain unchanged.
Further pressure on oil prices came from rising crude and fuel stockpiles in the U.S., the world’s largest oil consumer. According to market sources citing American Petroleum Institute (API) figures, U.S. crude inventories rose by 5.03 million barrels in the week ending January 31, greater than the 3.17 million barrels expected.
Investors now await official U.S. government oil inventory data, set for release later on Wednesday, which could provide further insights into market direction.