Crude oil prices fell 2.73% to 5,887 as markets reacted to rising global trade tensions and an unexpected increase in US oil supplies. The new US tariffs could hurt the global economy and reduce crude demand. The president confirmed a 10% base tax on imports and added new taxes of up to 41% for countries that do not have trade agreements with the US. He also announced a 40% tax on goods shipped through third countries, which is expected to slow global trade.
In addition, US oil inventories rose by 7.698 million barrels in the week ended July 25. This was the largest increase in six months, the EIA said. Stockpiles at Cushing, Oklahoma, also rose by 690,000 barrels. On the other hand, gasoline supplies fell by 2.725 million barrels, reflecting strong fuel consumption, while refining reserves increased by 3.635 million barrels.
The president warned that anyone buying Russian oil would face additional taxes of 100%, and threatened that China would face severe penalties if it continued to import from Russia. Meanwhile, OPEC+ is expected to agree to increase oil production in September,
