LONDON: Oil prices fell on Thursday as investors weighed the supply risks from U.S. President Donald Trump’s push for a swift resolution to the war in Ukraine through more tariffs, while a surprise build in U.S. crude stocks on Wednesday also weighed on prices.
Brent crude futures for September, set to expire on Thursday, declined by 61 cents, or 0.83%, to $72.63 a barrel by 1326 GMT. U.S. West Texas Intermediate crude for September fell 68 cents, or 0.97%, to $69.32.
Both benchmarks lost ground on Thursday after recording 1% gains on Wednesday.
“The market front-runs the implications of President Trump’s announcements before remembering that these policy intentions can turn on a dime if he can strike a deal,” said Harry Tchiliguirian at Onyx Capital Group.
“We’re seeing a re-evaluation until there is more clarity,” he added.
Trump said he would start imposing measures on Russia, including 100% secondary tariffs on its trading partners, if it did not make progress on ending the war in Ukraine within 10-12 days, moving up an earlier 50-day deadline.
The U.S. has also warned China, the largest buyer of Russian oil, that it could face huge tariffs if it kept buying.
On Wednesday, the U.S. Treasury Department announced fresh sanctions on more than 115 Iran-linked individuals, entities and vessels, stepping up the Trump administration’s “maximum pressure” campaign after bombing Iranian nuclear sites in June.
Meanwhile, U.S. crude oil inventories rose by 7.7 million barrels to 426.7 million barrels in the week ending July 25, driven by lower exports, the Energy Information Administration said on Wednesday. Analysts had expected a draw of 1.3 million barrels.
Gasoline stocks fell by 2.7 million barrels to 228.4 million barrels, far exceeding forecasts for a draw of 600,000 barrels.
“U.S. inventory data showed a surprise build in crude stocks, but a bigger than expected gasoline draw supported the view of strong driving season demand, resulting in neutral impact on the oil market,” said Fujitomi Securities analyst Toshitaka Tazawa.
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