Crude oil prices edged lower on Wednesday as investor sentiment remained cautious amid renewed trade tensions between the United States and China, a planned supply increase by OPEC+, and profit-taking by market participants.
Brent crude, the international benchmark, dipped by 0.2% to $65.32 per barrel, down from $65.44 at the previous session’s close. U.S. benchmark West Texas Intermediate (WTI) was little changed, slipping 0.01% to $62.83 per barrel from $62.84.
The modest decline comes as uncertainty resurfaces over U.S. trade policy following President Donald Trump’s executive order doubling tariffs on steel and aluminum imports to 50%. The protectionist move has reignited concerns about global economic growth and energy demand.
Adding to the cautious mood, the Organisation for Economic Co-operation and Development (OECD) revised its 2024 global growth forecast downward—from 3.1% to 2.9%—citing persistent trade frictions. While hopes remain that upcoming U.S.-China trade negotiations could yield progress, the lack of a clear resolution continues to fuel market volatility. The two countries are the world’s top crude oil consumers.
Traders have adopted a wait-and-see approach, with many locking in profits ahead of potential announcements. At a Tuesday press briefing, White House spokesperson Karoline Leavitt confirmed that the U.S. Trade Representative (USTR) had issued reminders to trading partners regarding looming tariff agreement deadlines. USTR Jamieson Greer also held recent talks in Paris, with new trade announcements expected soon.
Meanwhile, on the supply side, expectations of increased output from the OPEC+ alliance are adding downward pressure on prices. Last week, eight member countries—including Saudi Arabia, Russia, Iraq, and the United Arab Emirates—agreed to boost production by 411,000 barrels per day in July, consistent with output hikes in May and June.
However, potential supply disruptions in Canada may help offset some of the additional barrels and prevent a deeper oversupply in the near term.
Despite the current dip in prices, oil markets remain sensitive to geopolitical developments, trade policies, and shifting supply dynamics—all of which will be closely watched in the days ahead.
