Global oil benchmarks slipped on Wednesday as weakening demand prospects in the United States weighed on sentiment, while traders remained cautious ahead of a key OPEC+ gathering scheduled for next week.
Brent crude fell 0.5% to $68.63 per barrel from its previous settlement of $68.97, while U.S. benchmark West Texas Intermediate (WTI) slipped 0.5% to $64.98 from $65.34.
The pressure on prices followed fresh data showing continued weakness in U.S. manufacturing. The Institute for Supply Management (ISM) reported that the manufacturing PMI edged up slightly to 48.7% in August from July’s reading, but still fell short of forecasts and remained below the 50% expansion threshold.
In a parallel development, a U.S. appeals court ruled that most tariffs introduced during former President Donald Trump’s administration were illegal, though the ruling’s implementation was delayed until October 14 to allow time for a possible Supreme Court review. Analysts warned that overturning the tariffs could force the government to return billions in collected revenue, potentially deepening fiscal deficits.
On the supply front, the U.S. Treasury imposed sanctions on a network accused of disguising Iranian crude as Iraqi oil, further tightening restrictions on Tehran’s exports after the breakdown of nuclear negotiations. These measures, coupled with ongoing geopolitical strains, provided some support for oil futures.
Markets also monitored trade tensions between Washington and New Delhi after U.S. authorities doubled tariffs on certain Indian imports to 50%, citing India’s continued purchase of discounted Russian crude. The move comes as Saudi Arabia and Iraq reportedly halted crude shipments to a major Indian refinery with Russian links, further disrupting global flows.
Attention now shifts to the September 7 OPEC+ meeting, where members are expected to maintain current output levels. However, analysts caution that any fresh increase in production could trigger fears of oversupply.
