Oil Prices Steady as Investors Await U.S. Tariffs and OPEC+ Decision

Oil prices steadied early Wednesday following a slight dip in the previous session, as investors awaited the announcement of new U.S. tariffs that could escalate global trade tensions and impact crude demand.

Brent crude slipped by 2 cents to $74.47 a barrel by 0016 GMT after dropping 0.4% on Tuesday. U.S. West Texas Intermediate (WTI) crude edged up 1 cent to $71.21 after a similar 0.4% decline. Both benchmarks had touched five-week highs on Monday.

The White House confirmed President Donald Trump would unveil new tariffs later Wednesday, though no details were provided. Trump has called April 2 "Liberation Day," hinting at sweeping trade measures that could disrupt international markets.

Despite downward pressure from trade concerns, oil prices found support as Trump threatened secondary sanctions on Russian oil and expanded punitive measures on Iran, aiming to cut its crude exports. Over the weekend, Trump warned of military action if Iran refused to negotiate on its nuclear program.

U.S. oil inventory data offered mixed signals. According to the American Petroleum Institute, U.S. crude stocks rose by 6 million barrels for the week ending March 28. However, gasoline inventories fell by 1.6 million barrels, and distillate stocks dropped slightly by 11,000 barrels.

Official inventory figures from the U.S. Energy Information Administration (EIA) are expected later Wednesday and may influence short-term price movements.

Meanwhile, all eyes are on Thursday’s virtual meeting of OPEC+ ministers from eight countries. The group is expected to approve a production increase starting in May, according to Reuters sources, potentially impacting global supply dynamics.

With geopolitical tensions, policy shifts, and inventory changes in play, crude markets remain volatile amid ongoing global uncertainty.