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Oil prices remain stable as the market waits for new US tariffs

Oil prices remain stable as the market waits for new US tariffs

The oil prices were stable on Wednesday, after falling the previous day on fears that new U.S. trade tariffs to be announced later in the session could deepen a worldwide trade war and limit crude demand.

Brent futures fell 2 cents, to $74.47 per barrel at 0016 GMT on Wednesday after falling 0.4% Tuesday. U.S. West Texas Intermediate Crude Futures rose 1 cent to $71.21 following a 0.4% drop. On Monday, prices rose to the highest level in five weeks.

The White House confirmed on Tuesday that President Donald Trump would impose new trade barriers on Wednesday. However, it did not provide any details on the size or scope of these trade barriers.

Trump has been touting April 2 as "Liberation Day" for weeks. This would mean new duties which could shake the global trading system.

The White House will make an announcement at 4 pm. ET (2000 GMT).

As part of the "maximum-pressure" campaign by his administration to reduce Iran's exports, President Donald Trump threatened to impose secondary duties on Russian oil. He also increased sanctions against Iran on Monday. Trump had threatened to "bomb" Iran on Sunday if the country did not reach a nuclear deal.

The U.S. oil and fuel inventories also painted a mixed image about the supply and demand of the world's largest producer and consumer.

According to sources citing the American Petroleum Institute, crude oil stocks in the United States rose by 6,000,000 barrels during the week ending March 28. The sources reported that gasoline inventories fell by 1.6m barrels while distillate stocks dropped by 11,000 barrels.

The Energy Information Administration will release official U.S. crude inventory data later this Wednesday.

Sources say that investors are looking forward to the OPEC+ ministers meeting online on Thursday. They are expected to approve a new increase in production starting May. (Reporting and editing by Laila K. Kearney)

(source: Reuters)