WTI crude oil futures dipped to around $68 per barrel on Wednesday, trimming gains from the previous session, as investors weighed rising US crude stockpiles and the potential fallout from trade tensions. President Donald Trump ruled out any extension to the August 1 tariff deadline, intensifying concerns over global trade and its impact on energy demand.
Meanwhile, API data showed US crude inventories unexpectedly jumped by 7.1 million barrels last week—marking a second straight weekly increase—compared to market expectations of a 2.8 million-barrel draw. On the other hand, renewed Houthi attacks on Red Sea shipping raised fears of supply disruptions, offering some support to prices. The Red Sea remains a crucial route for crude oil shipments from the Middle East to Europe and Asia. Additionally, the latest EIA outlook revised down US oil production forecasts for 2025, citing weaker prices that have led producers to slow drilling activity.
