Crude Oil Futures Remain Flat Amid Tariff Tensions and Rising US Inventories

Crude oil futures remained steady on Thursday despite growing market concerns over U.S. tariff threats that could affect global economic stability. Recent announcements from U.S. President Donald Trump about imposing new tariffs on key trading partners have raised fears of lower global oil demand.

As of 9:56 a.m., Brent crude oil futures for September were trading at $70.23, showing a slight gain of 0.06%. Meanwhile, August contracts for West Texas Intermediate (WTI) crude stood at $68.37, down by just 0.01%. On the Multi Commodity Exchange (MCX), July crude oil futures were trading at ₹5,859, a 0.34% drop from the previous close of ₹5,879. August contracts were also down by 0.35%, trading at ₹5,762 compared to ₹5,782 in the prior session.

Trump Tariffs and Market Uncertainty

President Trump issued new tariff threats against countries like Brazil, Japan, and South Korea. A 50% tariff was specifically announced for Brazilian imports. This triggered a sharp response from Brazilian President Luiz Inácio Lula da Silva, who promised retaliation and referred to Trump as an “unwanted emperor” during the recent BRICS summit.

Investors are concerned that this renewed trade war stance may lead to reduced demand for global commodities, including crude oil. Since oil plays a central role in world trade, any slowdown in economic activity could weigh heavily on prices and future production.

US Inventory Data Shows Mixed Signals

Adding to the cautious mood, the latest weekly report from the U.S. Energy Information Administration (EIA) showed a notable increase in crude oil stockpiles. For the week ending July 4, commercial crude inventories rose by 7.1 million barrels, reaching 426 million barrels. While still 8% below the five-year seasonal average, the build indicates weaker-than-expected demand.

On the other hand, gasoline inventories fell by 2.7 million barrels and are now just 1% below the five-year average. Distillate stocks dropped by 0.8 million barrels and sit 23% below average levels. Total U.S. petroleum product supply over the last four weeks averaged 20.6 million barrels per day—down 1.6% compared to the same time last year.

Motor gasoline averaged 9.2 million barrels per day, while jet fuel rose 1.7% year-over-year. Distillate fuel, however, rose 3.8% in the same period, signaling stable industrial demand.

Other Commodity Movements

• Natural gas: July futures traded at ₹274.10 on MCX, up 0.37% from ₹273.10.
• Turmeric: August contracts on NCDEX opened at ₹13,420, up 0.90% from ₹13,000.
• Guarseed: July futures fell 0.55% to ₹5,211, compared to the previous close of ₹5,240.

Crude oil futures continue to reflect market hesitation as geopolitical developments and rising U.S. inventories create a mixed outlook. With trade tensions looming and oil demand patterns shifting, traders are staying cautious ahead of more concrete signals from major economies.

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