US-China Trade Dispute Impacts Oil Markets

Oil prices experienced a downturn on Wednesday, influenced by the latest developments in the US-China trade dispute. China has imposed a 10% tariff on US oil, alongside a 15% levy on coal and liquified natural gas. The ongoing bilateral discussions leave the full impact of these measures uncertain.

US Crude Inventories Report

Adding to the market's volatility, the US crude oil inventories report revealed a significant increase of 5.02 million barrels for the week ending January 31. This rise in inventories contributes to the downward pressure on oil prices.

Market Reaction

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