Oil prices dipped on Wednesday as rising US stockpiles and concern about a new Sino-US trade war fuelled fears of weaker economic growth, offseting US President Trump’s renewed push to eliminate Iranian crude exports. Brent crude futures were down 66 cents, or 0.87%, at $75.54 a barrel by 1007 GMT. US West Texas Intermediate crude (WTI) lost 61 cents, or 0.84%, to $72.09. Oil on Tuesday traded in a wide range, with WTI falling at one point by 3%, its lowest since Dec. 31, after China announced tariffs on US imports of oil, liquefied natural gas and coal in retaliation to US levies on Chinese exports. Prices rebounded, however, after Trump restored the “maximum pressure” campaign on Iran to curtail its nuclear programme he enacted in his first term, which cut Iranian crude exports close to zero. Ongoing trade tensions between the US and China may dampen demand for oil, putting downward pressure on prices. “Trump tariff chaos and trade war is no good for global growth and oil demand growth. Business investments and consumer spending will likely fall in the face of these highly erratic and growth-negative actions,” said Bjarne Schieldrop, chief commodities analyst at SEB.
Oil dips amid rising US crude inventories
Published on: February 6, 2025 11:52 AM