The prices of the two major crude oil grades were steady on Wednesday as investors weighed strong demand data in the US and attacks on shipping in the Red Sea.
Brent crude was up by 4 cents or 0.06 per cent to $70.19 a barrel and the US West Texas Intermediate (WTI) crude grew by 5 cents or 0.07 per cent to $68.38 a barrel.
US crude oil stockpiles rose unexpectedly last week, according to data from the US Energy Information Administration (EIA), while gasoline (petrol) drew down on strong driving demand ahead of the July 4 weekend.
Crude inventories rose by 7.1 million barrels to 426 million barrels in the week ended July 4. The build brings commercial stockpiles to 426 million barrels, still 8 per cent below the five-year average in the world’s largest producer.
However, gasoline demand rose 6 per cent to 9.2 million barrels per day last week, the EIA said.
Market analysts noted that US demand jumped back up, so the market is taking the build in crude supplies as kind of a one-off.
Also, renewed attacks in the major global shipping lane were renewed in the past week with six crew members rescued alive from the Red Sea on Wednesday and 15 were still missing from the second of two ships sunk in recent days in attacks claimed by Yemen’s Iran-aligned Houthi militia after months of calm.
Support still remained after an EIA forecast on Tuesday that the US will produce less oil in 2025 than previously expected, as declining prices have prompted US producers to slow activity. Higher production often weaken prices, so reduction moderates supply and provides support.
Meanwhile, tariffs are back in focus with US President Donald Trump saying he would impose a 50 per cent tariff on copper, aiming to boost US production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
The American President made the announcement as he delayed a deadline for some tariffs to August 1, spurring hopes among major trade partners that deals to ease duties could still be reached, though many remain uncertain.
Elsewhere, the Organisation of the Petroleum Exporting Countries and its allies (OPEC+) is set for another big output boost for September as they complete both the unwinding of voluntary production cuts by a sub-group of eight members.
The sub-group shocked the market over the weekend by increasing their quota by 548,000 barrels per day from 411,000 barrels per day.