Oil Prices React to US-China Trade Tensions

Oil prices experienced a downturn on Wednesday, influenced by the latest developments in the US-China trade dispute. China's announcement of a 10% tariff on US oil, alongside a 15% levy on coal and liquified natural gas, has added to the market's uncertainty. Despite ongoing discussions between the two nations, the full impact of these tariffs remains to be seen.

US Crude Oil Inventories Report

Adding to the market's concerns, the latest report on US crude oil inventories highlighted a significant increase of 5.02 million barrels in the week ending January 31. This surge in inventories has further pressured oil prices downward.

Market Impact

West Texas Intermediate (WTI) for March deliveries saw a decrease of 1.16%, trading at $71.90 per barrel at 7:02 am ET. Similarly, Brent for April's settlements dropped by 1.13%, reaching $75.35 per barrel shortly after.