Oil prices retreated from two-week highs as investors await clarification on US tariffs
9 July 2025 09:41
Oil prices declined on Wednesday after rising to two-week highs in the previous session, as investors await new decisions on US tariffs amid forecasts of rising US crude oil stocks. This is reported by "Komersant Ukrainian" with reference to Reuters.
Brent crude oil futures fell 7 cents, or 0.1%, to $70.08 per barrel as of 06:00 Kyiv time. U.S. West Texas Intermediate crude fell 8 cents, or 0.1%, to $68.25 per barrel.
Trump and duties
The latest postponement of tariffs by US President Donald Trump has given some hope to major trading partners Japan, South Korea and the European Union. They hope that agreements to reduce tariffs can still be reached. At the same time, it has confused some smaller exporters, such as South Africa, and left companies without clarity on the way forward.
Trump moved the previous deadline from Wednesday to August 1, a date he called final on Tuesday, saying:
“There will be no extensions.”
Trump added that he will impose a 50% tariff on imported copper and will soon impose promised levies on semiconductors and pharmaceuticals, expanding a trade war that has rattled markets around the world.
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Analysts’ observations
“Investors are constantly dealing with headlines about tariffs and the potential consequences of their negative impact on global trade. Given the uncertainty and potentially dismal economic growth going forward, it’s amazing how the energy complex can still rally with seemingly endless bearish headlines constantly creating pressure,”
– said Priyanka Sachdeva, senior market analyst at Phillip Nova.
There is concern that the tariffs could limit oil demand. And while there was strong travel demand during the July 4 U.S. holiday weekend, data from industry sources showed a possible increase in U.S. crude oil inventories of about 7.1 million barrels. Fuel product stocks were lower.
“The numbers from API overnight were bearish for oil. The changes in refined products were more constructive,”
– iNG analysts said in a note to clients.
Outlook
From a long-term supply perspective, the U.S. will produce less oil in 2025 than previously expected as lower oil prices forced U.S. producers to slow activity this year, the Energy Information Administration forecast in a monthly report Tuesday.
The world’s largest oil producer is projected to produce 13.37 million barrels per day of oil in 2025, down from last month’s forecast of 13.42 million barrels per day, the EIA said in its short-term energy outlook.
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