DTN Oil Update

Karim Bastati
DTN Analyst

VIENNA (DTN) -- Oil futures softened Wednesday morning, slightly retreating from the recent two-week high following an industry report showing growing crude oil stockpiles in the United States and the announced imposition of a 50% tariff on U.S. copper imports.

NYMEX-traded WTI for August was down $0.36 bbl to trade near $67.97 bbl, and ICE Brent for September delivery slipped $0.30 bbl to $69.85 bbl.

August RBOB gasoline futures declined $0.0053 to $2.1797 gallon, and the front-month ULSD futures contract fell $0.0413 to trade near $2.4000 gallon.

The U.S. Dollar Index gained 0.018 points to 97.190.

U.S. President Trump on Tuesday announced a 50% tariff on copper imports, catching many market observers by surprise. At the same time, the president dismissed the possibility of another extension of the Aug. 1 tariff deadline. The 90-day tariff freeze, which was set to expire today, has recently been postponed to Aug. 1, at which point new, significantly higher import duties will be levied by the U.S. government.

Higher tariffs are set to curb oil demand growth at a time when OPEC plans to significantly ramp up production, elevating global oversupply concerns. Eight member states shouldering some 2.2 million bpd in voluntary production cuts, in place since 2023, aim to fully unwind those by the end of September.

The American Petroleum Institute on Tuesday reported U.S. commercial crude oil inventories surprisingly surging by 7.1 million barrels last week, countering analyst expectations of a modest draw. If confirmed by official government data on Wednesday, this would mark the largest weekly increase in crude oil inventories since January. Official inventory data from the Energy Information Administration is scheduled for 10:30 a.m. EDT release today.