Oil Prices Steady Amid Tariff Uncertainties and Inventory Data
Tokyo, Japan - Oil prices fluctuated on Wednesday as investors weighed the potential impact of U.S. tariffs on Canadian and Mexican imports. However, they largely shrugged off a slight increase in U.S. weekly crude inventory.
Brent crude futures declined modestly by 2 cents to $77.47 a barrel as of 0132 GMT, while U.S. crude futures rose slightly by 4 cents (0.1%) to $73.81 a barrel.
Tariff Concerns
The White House has announced plans to impose 25% tariffs on imports from Canada and Mexico beginning Saturday, potentially impacting oil imports from these countries. Canada supplied approximately half of U.S. oil imports in 2023, while Mexico contributed 733,000 barrels per day (bpd).
Market Response
Investors are assessing the potential consequences of these tariffs, which could disrupt the U.S. energy market in the short term. However, they could also lead to lower demand and increased costs for consumers over the long term.
Inventory Data
The U.S. Energy Information Administration (EIA) reported a small increase in U.S. weekly crude oil and gasoline stocks but a decrease in distillate inventories. This data had a muted impact on oil prices.
Middle East Developments
In Libya, fears of supply disruptions subsided after the National Oil Corp announced the resumption of normal export activities following negotiations with protesters.
OPEC+ Meeting Ahead
Saudi Arabia's energy minister and other OPEC+ members have engaged in discussions following U.S. President Trump's call for lower oil prices. A meeting between OPEC+ countries is scheduled for next week.