Crude oil prices edge higher as market awaits fresh U.S. tariffs

Crude oil prices edged higher on Wednesday as market participants braced for U.S. reciprocal tariffs due to be announced at 2000 GMT, which could exacerbate a global trade war and dampen demand for crude. Brent futures were up 13 cents, or 0.2%, at $74.62 a barrel. U.S. West Texas Intermediate crude futures gained 31 cents, or 0.4%, to $71.51. Investors shrugged off a mostly bearish U.S. government data on crude inventory. U.S. crude inventories posted a surprise large build of about 6.2 million barrels last week, Energy Information Administration data showed.
“The report was bearish in my view, with larger crude inventories and total petroleum inventories rising,” UBS analyst Giovanni Staunovo said. “But the market took it as neutral, as the crude build is driven by a sharp increase in Canadian crude imports, likely ahead of the fear of the introduction of new tariffs.”
The White House confirmed on Tuesday that President Donald Trump will impose new tariff on Wednesday, though it provided no details on their size or scope. Trump’s tariff policies could stoke inflation, slow economic growth and escalate trade disputes. “Crude prices have paused last month’s rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump’s tariff announcement and its potential negative impact on growth and demand,” said Ole Hansen, head of commodity strategy at Saxo Bank. Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.
For weeks Trump has touted April 2 as “Liberation Day”, bringing new duties that could rattle the global trade system. The White House announcement is scheduled for 4 p.m. ET (2000 GMT). “The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff,” BMI analysts said in a note. Trump has also threatened to impose secondary tariff on Russian oil, and on Monday he toughened sanction on Iran as part of his administration’s “maximum pressure” campaign to cut its exports.
Adding to the complex global supply picture, Russia, the world’s second-largest oil exporter, on Wednesday imposed restrictions on another major oil export route, suspending a mooring at the Black Sea port of Novorossiisk a day after restricting loadings from a key Caspian pipeline. Russia produces about 9 million barrels of oil a day, or just under a 10th of global production. Its ports also ship oil from neighbouring Kazakhstan.