Oil Prices Weaken Amid Tariff Pressure and Surge in US Stockpiles
Oil prices fell slightly on Thursday morning as the market digested two main factors: the threat of additional tariffs from US President Donald Trump and a surprising report of an increase in US crude oil stockpiles. Geopolitical uncertainty and market fundamentals kept prices volatile despite strengthening in the previous session.
Brent crude for September delivery fell 60 cents to $72.64 per barrel, while US WTI crude also weakened 58 cents to $69.42 per barrel. This decline of approximately 0.8% occurred after both benchmarks had risen by about 1% on Wednesday. Market participants are now holding positions while awaiting further clarity regarding the direction of Trump's tariff policy.
President Trump recently announced that he would impose secondary tariffs of up to 100% on Russia's trading partners, including a direct warning to China, Russia's largest oil buyer. This move is intended to pressure Russia to quickly agree to a resolution to the war in Ukraine, with the deadline being shortened to just 10–12 days from the previous 50 days. According to Harry Tchiliguirian of Onyx Capital Group, the market is still waiting to see how these policy dynamics develop.
Meanwhile, US crude oil stocks rose sharply by 7.7 million barrels, far exceeding analysts' expectations of a decline. This increase was driven by declining exports and added pressure on prices. However, gasoline stocks actually fell significantly by 2.7 million barrels, which was seen as a positive signal regarding demand during the holiday and driving season in the US.
According to analyst Toshitaka Tazawa of Fujitomi Securities, this inventory data provides mixed signals. On the one hand, the surge in crude oil stocks is exerting pressure, but the large decline in gasoline indicates that consumer demand remains strong, so its impact on oil prices overall is likely neutral. The market is now awaiting the next direction of US policy and geopolitical developments in Europe and the Middle East. (ayu)
Source: Newsmaker.id
