Oil futures: Crude lower as trade war fears offset Iran clampdown
Quantum Commodity Intelligence - Crude oil futures Wednesday were in retreat on broader demand concerns, but markets remain volatile amid mixed pricing signals.
Front-month Apr25 ICE Brent futures were trading at $74.85/b (1750 GMT) versus Tuesday's settle of $76.20/b.
At the same time Mar25 NYMEX WTI was trading at $71.31/b, compared to Tuesday's close of $72.70/b.
The prospect of an extended trade war, fuelled by tit-for-tat import taxes between the US and China, had sunk prices to three-week lows in the previous session, with the downwards pressure extended into Wednesday.
"While 25% tariffs on Mexican and Canadian imports were postponed by 30 days, thereby helping to soften US crude and fuel prices, the trade dispute between the US and China has raised demand concerns—not least in China, an economy that has grown increasingly dependent on exports at a time of weak consumer confidence at home," said Ole S Hansen, Head of Commodity Strategy at Saxo Group.
Prices also wobbled after the EIA revealed US commercial crude oil inventories soared by 8.7 million barrels from the previous week.
Benchmarks had staged something of a recovery after US President Donald Trump signed an executive order to impose "maximum pressure" on Iran, which is expected to target Iranian oil exports unless Tehran reaches a deal restricting its nuclear ambitions.
But this week has seen the last of the 2025 oil gains all but eradicated as US tariff policy grabbed the headlines and dictated sentiment across the financial markets.
Tariffs
The 10% across-the-board tariffs on Chinese goods were countered by Beijing applying levies to US imports, including oil and LNG.
But when asked about the implications of retaliatory sanctions, Trump said he was "in no rush" to speak to the country's president, Xi Jinping.
Tuesday's late report from the American Petroleum Institute (API) sowing US commercial crude stockpiles increased by more than 5 million barrels last week did little to move the needle earlier on.
US distillates stocks tumbled almost 7 million barrels following winter storms, the API reported, offsetting the near 5.5 million increase in gasoline stocks.
