Oil Prices Near $70 Amidst Rising Crude Stockpile in US
Oil prices traded above $69 per barrel in the global commodity market on Wednesday amid concerns over weakening demand following a surprise increase in US crude inventories, despite strong travel activity over the July 4 holiday weekend.
International benchmark Brent crude decreased by around 0.1%, trading at $69.47 per barrel, down from $69.53 at the previous session’s close. Similarly, US benchmark West Texas Intermediate (WTI) decreased by 0.1%, settling at $67.19 per barrel, compared to $67.26 in the prior session.
The American Petroleum Institute (API) reported an unexpected 7.1 million-barrel increase in US crude inventories for the week ending July 4, defying market expectations for a 2.8 million-barrel draw.
The data signaled weaker-than-anticipated demand in the world’s biggest consumer, adding downward pressure on prices.
The build in crude stocks occurred during a holiday period when strong travel activity was recorded over the July 4 weekend. Traders now await official inventory data from the US Energy Information Administration (EIA), due later on Wednesday.
A confirmed stock build could reinforce bearish sentiment, while a drawdown may offer limited upside support.
Moreover, market sentiment remains fragile due to uncertainties surrounding the potential impact of US tariffs on major trading partners. This persists despite Washington’s ongoing trade negotiations with several countries.
US President Donald Trump’s recent remarks intensified risk perceptions, as he confirmed that tariff rates outlined in official letters would take effect starting Aug. 1 and would not be postponed.
His announcement of a 50% tariff on copper imports and plans to unveil new tariffs on semiconductors further deepened existing market risks. These developments have fueled growing concerns that heavier tariffs could be introduced, putting pressure on the global economy and, in turn, dampening oil demand, contributing to the recent decline in oil prices.
Meanwhile, the EIA revised its 2025 Brent crude oil price forecast upward, citing increased geopolitical risk as a key driver. According to the EIA’s Short-Term Energy Outlook released late Tuesday, the average Brent crude oil price for this year is projected at $68.89 per barrel, up more than $2.90 from last month’s estimate of $65.97. #Oil Prices Near $70 Amidst Rising Crude Stockpile in US
