Oil prices remained steady in early Wednesday trading, as markets awaited further details on the U.S. tariff measures set to be unveiled at 20:00 GMT. Investors are closely watching whether the new policies could exacerbate global trade tensions and impact crude demand.
- Brent crude futures held at $74.49 per barrel by 06:22 GMT, following a 0.4% decline on Tuesday.
- West Texas Intermediate (WTI) crude edged up 3 cents to $71.23 per barrel, after also dropping 0.4% in the previous session.
- Both benchmarks had touched five-week highs on Monday before stabilizing.
While oil prices gained nearly 2% in March, thin trading volumes suggest growing uncertainty ahead of President Donald Trump’s tariff announcement.
Tariff Impact Could Shape Oil Market Sentiment
The White House confirmed that Trump will impose new trade tariffs on Wednesday but provided no details on their scope. Dubbed “Liberation Day”, the measures could significantly reshape global trade flows.
- The tariff announcement is scheduled for 16:00 ET (20:00 GMT).
- Analysts at BMI Research note that while tariffs could push prices in either direction, the greater risk lies to the downside, as stricter measures may trigger a selloff in Brent crude.
- However, potential secondary tariffs on Russian oil and the expansion of U.S. sanctions on Iran could provide some upside support for prices.
Energy markets are also monitoring China’s reaction to the proposed tariffs, given its role as the world’s largest crude importer.
U.S. Oil Inventories Provide Mixed Signals
Supply and demand indicators in the U.S. added another layer of uncertainty:
- U.S. crude inventories rose by 6 million barrels in the week ending March 28, according to data from the American Petroleum Institute (API).
- Gasoline stockpiles declined by 1.6 million barrels, while distillate inventories saw a slight drop of 11,000 barrels.
- Official Energy Information Administration (EIA) data is expected later on Wednesday.
With global markets on edge, traders are waiting for official responses from key oil-importing nations before making strong directional bets.