Oil prices held steady on Wednesday after declining in the previous session, as investors remained cautious ahead of the anticipated rollout of new United States tariffs that could further strain global trade and impact crude demand.
At 2:55 pm AEDT (3:55 am GMT), Brent crude futures edged up by US$0.04, or 0.1%, to US$70.78 per barrel. US West Texas Intermediate (WTI) crude futures gained US$0.03, or 0.04%, to US$74.52 per barrel.
The White House confirmed on Tuesday that President Donald Trump would implement new tariffs on Wednesday, though details on their scope and scale remain unclear. Trump has referred to April 2 as "Liberation Day", hinting at duties that could disrupt global trade.
Downward pressure on oil prices was partially offset by geopolitical tensions. President Trump has threatened secondary tariffs on Russian oil buyers while intensifying sanctions on Iran as part of his administration’s "maximum pressure" campaign aimed at curbing Tehran’s crude exports.
ANZ analysts highlighted the supply-side risks in a note to clients: “The warning came amid frustrations in getting Russia to agree to a ceasefire with Ukraine. The warnings were enough for buyers of Russian oil to start seeking alternatives.”
Market participants also assessed mixed signals from U.S. oil inventory data. According to sources citing the American Petroleum Institute (API), US crude oil inventories rose by 6.037 million barrels for the week ending 28 March.
Official inventory data from the U.S. Energy Information Administration (EIA) is set for release later on Wednesday, which could further influence market sentiment.
Investors are also looking ahead to Thursday, when ministers from eight OPEC+ nations that are gradually increasing oil production are scheduled to meet online.
