Global oil prices remained stable as traders balanced a significant rise in U.S. crude stockpiles against growing geopolitical and trade-related uncertainties.
Brent crude hovered near the $70 per barrel mark after ending Wednesday’s session largely unchanged, while West Texas Intermediate (WTI) held around $68.
According to official data, U.S. crude inventories rose by 7.1 million barrels last week, marking the largest weekly build since January. Stockpiles at the Cushing, Oklahoma storage hub also increased — the first such rise since May — signaling a potential easing of supply constraints.
Meanwhile, traders remain cautious as President Donald Trump intensifies his tariff policy, with Brazil the latest target of steep levies. The move follows earlier threats of tariffs on copper and measures against other countries, contributing to broader market volatility. The President’s protectionist stance and potential retaliatory actions by affected nations continue to unsettle global markets.
Despite these headwinds, oil remains slightly higher on the week, even after OPEC+ announced a larger-than-expected production increase for August. The oil producers’ group is banking on strong summer demand to absorb the additional output. However, analysts warn of a potential oversupply risk in the latter part of the year as seasonal consumption wanes.
Market participants are also monitoring developments in the Middle East, where Tehran-backed Houthi militants have escalated attacks on commercial vessels in the Red Sea, sinking two ships and killing multiple crew members. These incidents come amid a fragile truce following recent hostilities between Israel and Iran, raising concerns over regional stability.
“Despite a barrage of headlines, the market seems stuck in a holding pattern,” said Priyanka Sachdeva, Senior Market Analyst at Phillip Nova Pte in Singapore. “Unless there is a significant uptick in demand or a major supply disruption, crude prices are likely to continue moving sideways.”
