By Laila Kearney
(Reuters) – Oil prices steadied on Wednesday after falling in the previous session on concerns new U.S. tariffs set to be unveiled later in the day may deepen a global trade war that could limit crude demand.
Brent futures were down 2 cents to $74.47 a barrel by 0016 GMT after slipping 0.4% on Tuesday. U.S. West Texas Intermediate crude futures were up 1 cent to $71.21 after dropping 0.4%. Prices rose to their highest in five weeks on Monday.
The White House on Tuesday confirmed that President Donald Trump will impose new tariffs on Wednesday, though it provided no details about the size and scope of trade barriers.
For weeks, Trump has touted April 2 as a “Liberation Day,” which would which would bring new duties that could rattle the global trade system.
The White House announcement is scheduled for 4 p.m. ET (2000 GMT).
The declines were offset by threats by U.S. President Donald Trump to impose secondary tariffs on Russian oil, and as he ramped up sanctions on Iran on Monday as part of his administration’s “maximum pressure” campaign to cut its exports. On Sunday, Trump threatened “bombing” Iran if it did not make a deal over its nuclear weapons programme.
Additionally, U.S. oil fuel inventories painted a mixed picture about supply and demand from the world’s biggest producer and consumer.
U.S. crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources, citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks fell by 11,000 barrels, the sources said.
Official U.S. crude oil inventory data from the Energy Information Administration is due later on Wednesday.
Investors are also looking forward to Thursday, when OPEC+ ministers from eight nations that are gradually raising oil output are scheduled to meet online and are likely to approve a further hike in production from May, sources from the producer group told Reuters.
(Reporting by Laila Kearney; Editing by Christian Schmollinger)
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