HOUSTON: Oil prices slipped on Wednesday as investors weighed a surprise build in US crude stocks last week against attacks on shipping in the Red Sea and a forecast for lower US oil production. Brent crude futures were down 20 cents, or 0.29%, to $69.95 a barrel by 10:50 a.m. EDT.
US West Texas Intermediate crude was down 24 cents, or 0.35%, to $68.09 a barrel. US crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday.
Crude inventories rose by 7.1 million barrels to 426 million barrels in the week ended July 4, the EIA said, compared with analysts’ expectations in a Reuters poll for a draw of 2.1 million barrels. Curbing price losses, after months of calm in the Red Sea, attacks in the major global shipping lane were renewed in the past week, which sources attribute to Yemen’s Iran-allied Houthi militia.
A mission was underway on Wednesday to rescue the crew from a cargo ship which sank in the Red Sea following an attack that killed at least four crew members. The Houthis have claimed responsibility for the attack.
Oil prices also were supported by an EIA forecast on Tuesday that the US will produce less oil in 2025 than previously expected, as declining prices have prompted US producers to slow activity. On Tuesday, US President Donald Trump said he would announce a 50% tariff on copper, aiming to boost US production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods.
Trump made the announcement as he delayed a deadline for some tariffs to August 1, spurring hopes among major trade partners that deals to ease duties could still be reached, though many companies remain uncertain on the path forward.
Elsewhere, OPEC+ oil producers were set for another big output boost for September as they complete both the unwinding of voluntary production cuts by eight members, and the United Arab Emirates’ move to a larger quota, five sources said. The group announced on Saturday that it had approved a supply increase of 548,000 barrels per day for August.
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