Oil prices declined on Wednesday, driven by persistent concerns over weakening U.S. demand, even as geopolitical tensions and trade uncertainties kept investors cautious ahead of an OPEC+ meeting. Brent Crude fell 0.5% to $68.63 per barrel from $68.97, while West Texas Intermediate (WTI) dropped 0.5% to $64.98 from $65.34.
U.S. manufacturing activity contracted for the sixth consecutive month in August, with the ISM manufacturing PMI edging up to 48.7% from July but falling short of the anticipated 49%, underscoring ongoing economic softness in the world’s largest oil consumer.
A U.S. appeals court ruled on Friday that most of President Donald Trump’s tariffs were unlawful, casting doubt on his trade policies. The court postponed enforcement of its decision until October 14, pending a potential Supreme Court appeal. Trump vowed to seek a swift reversal. Analysts cautioned that overturning the tariffs could force the U.S. to refund billions, potentially widening the budget deficit.
On the supply front, the U.S. Treasury imposed sanctions on a network of companies and vessels, led by an Iraqi-Kittian businessman, for masking Iranian oil as Iraqi crude. These measures, following stalled nuclear talks, have bolstered oil futures by signaling tighter global supplies. Markets are also monitoring U.S.-India trade talks after Washington escalated tariffs on Indian imports from 25% to 50% due to India’s purchases of Russian oil. Additionally, Saudi Arabia and Iraq reportedly suspended crude deliveries to a major Russian-backed Indian refinery after EU sanctions in July, raising concerns about supply disruptions.
Attention is now focused on the September 7 meeting of eight OPEC+ members, where analysts expect production levels to remain steady after recent increases. However, fears of oversupply linger if the group opts for further output hikes.
Syria Resumes Oil Exports
Syria has restarted heavy crude oil exports from its Tartus terminal for the first time in over a decade, according to the Syrian Energy Ministry. On Monday, 600,000 barrels were shipped aboard the tanker Nissos Christiana to B Serve Energy Company. The ministry framed the export as a step toward strengthening Syria’s role in global oil markets, with plans for additional shipments. In June, Syria also resumed exporting non-crude petroleum products from its Baniyas refinery, shipping 30,000 metric tons to international markets.
Located 35 km north of Tartus, Baniyas hosts Syria’s largest refinery and a key oil port. Before the civil war in 2011, oil contributed 20% to Syria’s GDP, half of its exports, and over 50% of state revenues, with production at 390,000 barrels per day (bpd) in 2010. By 2023, output had plummeted to 40,000 bpd. During the conflict, Syria leaned on Iranian oil for power generation, but supplies halted after Bashar al-Assad’s ouster in December 2024. Assad, who led Syria for nearly 25 years, sought refuge in Russia, ending the Ba’ath Party’s rule since 1963. A transitional government under President Ahmad al-Sharaa took over in January.
