Oil Prices Stable Amid Rising US Stockpiles and Tariff Uncertainty
Oil prices are currently stable around $70 per barrel for Brent and $68 per barrel for West Texas Intermediate (WTI), after rising for two consecutive days. This stability comes despite a report from the American Petroleum Institute (API) showing a 7.1 million barrel increase in US crude oil inventories last week, potentially the biggest increase since January if government data confirms it.
Market participants are now focused on US tariff policies under President Donald Trump, which remain aggressive and show no signs of easing. Trump has promised to continue his tariff agenda, including the possibility of imposing new tariffs on copper imports, adding to uncertainty about global oil demand. Concerns over the impact of these tariffs have weighed on oil prices since the beginning of the year.
On the geopolitical front, the conflict between Israel and Iran increased oil market volatility, but a fragile ceasefire has now returned market attention to fundamental factors such as global trade policy and supply from OPEC+. Volatile US oil production has also limited drilling activity, with the US Energy Information Administration lowering its projection for production growth this year.
Analysts predict the oil market could face a supply surplus after the summer, when peak demand begins to decline and OPEC+ production increases. Furthermore, the risk of falling demand due to tighter tariff policies could further pressure oil prices in the future.
Source: (ayu-newsmaker)
