Oil steady as traders weigh rising US stockpiles, Trump’s levies

Oil steadied as traders weighed a large increase in US crude stockpiles and a wave of new tariff rates from President Donald Trump.

Brent held near $70 after closing little changed on Wednesday, while West Texas Intermediate was around $68.

US inventories rose by about 7.1 million barrels last week, the biggest build since January, according to official data. Stockpiles at the Cushing storage hub expanded for the first time since May.

The market continues to monitor a flurry of tariff demand letters being issued by Trump, with Brazil the latest to be slapped with high levies, following threats on copper imports and other countries.

The president’s trade regime and vows of retaliation by targeted nations has rattled global markets.

Oil is still marginally higher this week, despite a decision by OPEC+ on Saturday to raise output more than expected in August. The group is betting on robust summer demand to help absorb the extra barrels, but there are concerns the market is facing a glut later in the year as peak consumption declines.

Traders are also keeping an eye on any escalation of tensions in the Middle East after Tehran-backed Houthi militants intensified their attacks on ships in the Red Sea, sinking two vessels and killing sailors.

The hostilities follow a conflict between Israel and Iran, which is currently subject to a fragile truce.

“Despite a barrage of headlines, the market seems stuck in a holding pattern,” said Priyanka Sachdeva, a senior market analyst for brokerage Phillip Nova Pte in Singapore. “Until either demand strengthens materially or supply shocks escalate meaningfully, crude may continue to drift sideways.”