Oil prices dip amid trade tensions and growing U.S. inventories

New York: Crude oil prices declined today, retreating from recent two-week highs as market participants grapple with ongoing trade uncertainties and rising U.S. stockpiles. The market’s cautious tone reflects concerns over potential impacts on global demand and supply dynamics.

Brent crude futures fell by 15 cents, or 0.2 percent, trading near $70 a barrel. The decline is primarily driven by investor unease over the unclear implications of recently announced U.S. tariffs, which have injected volatility into global trade prospects and clouded the outlook for oil consumption.

Adding to the bearish sentiment, expectations of increased oil output from OPEC+ producers have gained traction. The alliance is preparing for a substantial boost in production in September, as eight member countries wind down voluntary cuts, and the United Arab Emirates secures a larger quota.

This anticipated surge in supply, combined with a surprising weekly rise of 7.3 million barrels in U.S. crude inventories for the week ending June 27—far surpassing forecasts of a decline—has further pressured prices.

Despite some signs of resilient demand, notably with strong U.S. gasoline consumption, the overarching concerns around trade policies and supply increases continue to temper bullish momentum.

Market watchers remain vigilant for further developments from global trade negotiations and OPEC+ policy decisions, which are expected to influence oil prices in the near term.