Oil Prices React to Trade Tensions and Inventory Reports

In the midst of escalating trade tensions between the United States and China, oil prices experienced a downturn on Wednesday. The Chinese government has imposed a 10% tariff on US oil, along with a 15% levy on coal and liquified natural gas, signaling a potential escalation in the trade dispute. Despite ongoing discussions between the two nations, the full impact of these tariffs remains uncertain.

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

By 7:02 am ET, West Texas Intermediate (WTI) for March delivery had fallen by 1.16% to $71.90 per barrel. Similarly, Brent crude for April settlement saw a 1.13% drop, trading at $75.35 per barrel shortly after.