Oil prices declined Wednesday as investor sentiment was weighed down by renewed US-China trade uncertainty, a planned supply increase by OPEC+, and profit-taking by cautious market participants.
International benchmark Brent crude decreased by around 0.2%, trading at $65.32 per barrel at 10.30 a.m. local time (0730 GMT), down from $65.44 at the previous session's close.
Similarly, US benchmark West Texas Intermediate (WTI) fell by about 0.01%, settling at $62.83 per barrel, compared to $62.84 in the prior session.
The price decline comes amid growing uncertainty over US President Donald Trump's protectionist trade policies.
On Wednesday, Trump signed an executive order doubling tariffs on steel and aluminum imports to 50%鈥攁 move that reignited concerns over global economic growth and oil demand.
The OECD cut its global growth forecast for 2024 from 3.1% to 2.9%, citing persistent trade tensions. The US administration's shifting trade stance continues to inject volatility into global markets.
Still, hopes for progress in US-China trade talks are offering limited support. Both countries are the world's largest crude consumers. However, traders remain cautious, taking profits ahead of any concrete outcomes.
At a press briefing Tuesday, White House spokesperson Karoline Leavitt said the US Trade Representative (USTR) had sent letters to trading partners reminding them that the deadline for reaching tariff agreements is nearing. USTR Jamieson Greer recently held talks in Paris, and announcements on new agreements are expected soon.
On the supply side, a planned output hike from the OPEC+ alliance is adding to bearish sentiment. Last week, eight OPEC+ members鈥攊ncluding Saudi Arabia, Russia, Iraq, and the UAE鈥攁greed to boost production by 411,000 barrels per day in July, in line with increases in May and June.
Still, supply disruptions in Canada could offset some of the additional barrels, easing immediate oversupply concerns.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr