Oil prices edged higher on Wednesday as traders braced for new U.S. tariffs set to be announced at 2000 GMT, raising concerns over a potential escalation in global trade tensions and its impact on crude demand.
Brent crude futures climbed 13 cents, or 0.2%, to $74.62 per barrel by 10:53 a.m. EDT (1453 GMT), while U.S. West Texas Intermediate (WTI) crude gained 31 cents, or 0.4%, to $71.51 per barrel.
Investors largely shrugged off U.S. government data showing an unexpected crude inventory build of 6.2 million barrels last week. The increase was attributed in part to a sharp rise in Canadian crude imports, potentially in anticipation of new U.S. trade restrictions.
The White House confirmed that President Donald Trump will introduce new tariffs, though specific details on their scope remain unclear. The announcement, which Trump has referred to as “Liberation Day,” is expected to introduce reciprocal duties that could reshape trade flows and affect economic growth.
Oil markets have paused after last month’s rally, with Brent crude facing resistance above $75. The primary focus has shifted from supply concerns driven by sanctions to the potential impact of trade measures on demand. Tariffs on crude imports could push up refined product prices, further complicating market dynamics.
Trump has also warned of secondary tariffs on Russian oil, alongside fresh sanctions on Iran aimed at further reducing its exports. Meanwhile, Russia—the world’s second-largest oil exporter—tightened controls on a key Black Sea oil export route. A mooring at the Novorossiisk port was suspended just a day after restrictions were imposed on loadings from a major Caspian pipeline.
Russia produces about 9 million barrels of oil per day, roughly 10% of global supply. Its ports also serve as a major export channel for Kazakhstan’s crude. As new trade policies unfold, market participants are closely watching how these developments will affect global energy flows and pricing trends.
