WASHINGTON (dpa-AFX) - Oil prices drifted down on Wednesday, extending recent weakness, as tariff threats by U.S. President Donald Trump, and concerns about possible excess supply in the market due to the Trump administration's plan to maximize oil and gas production.
West Texas Intermediate Crude oil futures for March ended down by $0.39 or about 0.5% at $75.44 a barrel, extending losses to a fifth straight session.
Brent crude futures closed lower by $0.29 or 0.37% at $79.00 a barrel.
On Tuesday, Trump said that his team was discussing a 10% tariff on China from February 1 to curb the flow of deadly drug fentanyl that is being sent from China to the U.S. via Mexico and Canada.
China, one of the major consumers of crude oil in the world market, has been facing uncertainties and weak demand in post-pandemic recovery.
The Chinese Vice Premier, Ding Xuexiang, who addressed the World Economic Forum, said that there are no winners in a trade war and there is need for greater international economic cooperation.
Trump also said that his administration would 'probably' stop buying oil from Venezuela, a member of the Organization of the Petroleum Exporting Countries under U.S. sanctions.
According to a recent report from the Energy Information Administration, the U.S. imported about 200,000 barrels per day of oil from Venezuela during the first 10 months of 2024, up from an average of 100,000 bpd in 2023.
Markets now await weekly oil reports from the American Petroleum Institute (API) and EIA. The API report is due later today, while the EIA will release its inventory data Thursday morning.
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