FX.co ★ Oil Fluctuates as Fresh US Tariffs Loom

On Wednesday, West Texas Intermediate (WTI) crude oil futures hovered around the $71 per barrel mark as the market anticipated the introduction of retaliatory tariffs by the United States, which could potentially intensify the ongoing global trade war. Although the White House refrained from providing specifics regarding the magnitude or exact nature of these tariffs, they clarified that such measures would be implemented immediately upon announcement. President Trump indicated that the tariffs would affect numerous countries, sparking fears of a consequent economic downturn that might diminish energy demand. In addition, recent developments in oil markets were influenced by President Trump's threats of imposing secondary sanctions on Russian oil and enhancing penalties on Iran, as part of his stringent efforts to restrict their export capabilities. Concurrently, data from the Energy Information Administration (EIA) revealed a 6.165 million barrel increase in crude oil inventories, while gasoline stocks decreased by 1.551 million barrels. Market participants are also keenly awaiting the upcoming OPEC+ meeting scheduled for later in the week.