Oil prices edged higher on Wednesday as market players braced for U.S. reciprocal tariffs due to be announced, which could worsen a global trade war and dampen demand for crude.
Brent futures were up 13 cents, or 0.2%, at $74.62 U.S. a barrel. U.S. West Texas Intermediate crude futures gained 31 cents, or 0.4%, to $71.51.
Energy Information Administration data showed investors shrugged off a mostly bearish U.S. government data on crude inventory. U.S. crude inventories posted a surprise large build of about 6.2 million barrels last week.
The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details on their size or scope.
Trump’s tariff policies could stoke inflation, slow economic growth and escalate trade disputes.
Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.
For weeks Trump has touted April 2 as “Liberation Day”, bringing new duties that could rattle the global trade system.
The White House announcement is scheduled for 4 p.m. ET.
Trump has also threatened to impose secondary tariffs on Russian oil, and on Monday he toughened sanctions on Iran as part of his administration’s “maximum pressure” campaign to cut its exports.
Adding to the complex global supply picture, Russia, the world’s second-largest oil exporter, on Wednesday imposed restrictions on another major oil export route, suspending a mooring at the Black Sea port of Novorossiisk a day after restricting loadings from a key Caspian pipeline.
Russia produces about 9 million barrels of oil a day, or just under a 10th of global production. Its ports also ship oil from neighboring Kazakhstan.
