Oil Prices Stabilize Near $70 Per Barrel Amid Escalating Trade Tensions and Tariffs

Oil prices stabilized near $70 per barrel amid growing trade tensions and a significant increase in U.S. crude inventories,
adding to uncertainty in global markets.

Contents

Markets
Tariffs
OPEC

Markets

Market Assessment of Rising U.S. Inventories and Trade Policy Uncertainty
Global oil prices remained stable during the week, with Brent crude hovering near $70 per barrel, while West Texas Intermediate (WTI) settled around $68. This came as global trade tensions escalated and U.S. crude stockpiles recorded a sharp increase.

According to official U.S. data, inventories rose by 7.1 million barrels last week — the largest weekly increase since January. Storage levels also climbed in Cushing, the key U.S. delivery hub, sparking concerns among investors about weakening demand or an oversupplied market.

Tariffs

Tariffs Threaten Global Markets and the Energy and Metals Sectors
Markets continue to closely watch U.S. President Donald Trump’s tariff announcements. Most recently, he declared a 50% tariff on copper imports starting August 1. This measure is expected to directly affect manufacturers of cars, homes, and household appliances that rely on this essential industrial metal.

The U.S. administration’s actions triggered strong reactions in global markets, especially after targeting countries like Brazil with elevated tariffs, in addition to threats of sector-specific tariffs on imports from other nations. These measures have amplified trade uncertainty, prompting some producers to accelerate their shipments to the U.S. before the new tariffs take effect.

OPEC

Geopolitical Concerns and Demand Forecasts Amid OPEC+ Production Plans
Despite the ongoing tensions, oil prices have edged slightly higher this week,
supported by expectations of strong summer demand.
This comes as OPEC+ announced a surprise production increase starting in August,
betting that peak summer consumption will help absorb the extra supply.

However, fears are growing that an oversupply could develop later in the year as the market exits the summer peak.

On the geopolitical front, traders are closely monitoring developments in the Middle East after Iran-backed Houthis ramped up attacks on commercial vessels in the Red Sea, resulting in the sinking of two ships and the deaths of several sailors.
These attacks follow recent clashes between Israel and Iran, which have paused under a fragile ceasefire.

Oil Prices Stabilize Near $70 Per Barrel Amid Escalating Trade Tensions and Tariffs

Oil Prices Stabilize Near $70 Per Barrel

Related Topics