WASHINGTON (dpa-AFX) - Crude oil price moved a little higher on Wednesday, supported by EIA data supporting strong gasoline demand.
WTI Crude Oil for August delivery inched up by $0.05 to settle at $68.38 per barrel today.
September month Brent Crude contract was last seen trading, up by $0.06, to $70.21 per barrel today.
US President Donald Trump stated that he is planning to impose a new 50% tariff on all copper imports to the US. This could make electronic goods, machinery, and cars expensive in the US. He also added that 200% tariffs on pharmaceuticals are coming 'very soon'.
If inflation increases, the demand for oil and energy can take a hit.
With Trump extending his 'reciprocal' tariff pause to August 1, the EU and India are working very closely with US officials to reach a trade agreement. The UK, China, and Vietnam have already closed trade deals.
The market has already digested the July 6 decision by OPEC+ for a 548,000 barrels per day increase in production in August and a second increase in September.
Saudi Arabia's national oil company, Saudi Aramco, has stated that by the end of the year, daily demand is expected to grow by around 1.2 to 1.3 million barrels.
According to Energy Information Administration's data, crude oil inventories in the US rose by 7.070 million barrels for the week ending July 4, the biggest gain since January. Gasoline stocks fell by 2.658 million barrels and distillate fuel stocks decreased by 825,000 barrels.
In the Middle East, the Red Sea attacks on two bulk carriers, Magic Seas and Eternity C, in the past couple of days by Iran-aligned Houthi militia is concerning traders as they fear that a retaliation by US and West could escalate the situation and disrupt oil-and-energy supply-transit channels for a prolonged period.
As the truce announced by Trump between Israel and Iran is holding on peacefully, Houthi attacks have come in as new and serious issue to factor in.
Being a dollar-denominated commodity, the decision by the US Fed on interest rates in the coming days will decide the movement of the US dollar and thereby impact oil prices too.
However, analysts feel that the price of oil shall stabilize in the second week of August when a clear picture on Trump's tariffs starts to emerge.
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