WASHINGTON (dpa-AFX) - Crude oil price fell on Wednesday despite a larger-than-expected drop in US inventories, as traders focused on the ongoing US trade talks with its partners and assessed the deals signed so far.
Today, WTI Crude Oil for September delivery edged down by $0.06 to settle at $65.25 per barrel.
September month Brent Crude contract was last seen trading down by $0.08, to $68.51 per barrel.
Data provided by API revealed that US crude oil inventories dropped by 577,000 barrels for the week ending July 18, reversing the previous week's downwardly revised 840,000-barrel build.
Separately, the Petroleum Status Report by US EIA revealed that for the week ending July 18, crude oil inventories in the US fell by 3.169 million barrels, gasoline stocks fell by 1.738 million barrels, and distillate fuel inventories (including heating oil and diesel) increased by 2.9 million barrels.
At 419 million barrels, US crude inventories are about 9% below the five-year average for this time of year.
With an August 1 deadline for countries to sign up a trade deal with the US or face tough tariffs nearing, investors are focused on ongoing trade talks and deals signed. US President Donald Trump announced that a tariff framework has been finalized with Japan and the Philippines. A tighter tariff regime will bump up inflation globally and reduce demand for oil and energy.
Trump's 50-day deadline to Russia to cease its Ukrainian invasion and thereby avoid tariffs has temporarily eased immediate concerns over supply shocks. Russia is yet to show signs of conceding, though. India and China jointly import and rely on over 3.5 million barrels per day of Russian crude. Secondary sanctions on Russia could disrupt oil trade potentially.
Despite OPEC+'s recent consensus, about 10 days ago, to speed up the rollback of production cuts, lifting output by 5,48,000 bpd, prices have only softened modestly.
Tariffs, OPEC+ cartel's policy adaptations, Russian response to US sanctions, and geopolitical risks could signal the way oil price moves in the coming weeks.
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