Oil prices steadied in thin trading on Wednesday after falling in the previous session on concerns that new U.S. tariffs, set to be unveiled at 2000 GMT, may deepen a global trade war that could limit crude demand.

Brent futures gained 1 cent to $74.50 a barrel by 0346 GMT after slipping 0.4% on Tuesday. U.S. West Texas Intermediate crude futures rose 3 cents to $71.23 after dropping 0.4%. Prices settled at their highest in five weeks on Monday.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details about the size and scope of the trade barriers.

"Oil prices increased nearly 2% in March but have remained steady since as markets await clarity on Trump's universal tariff plans ahead of 'Liberation Day.' The thin trading volumes in the oil market indicate rising concerns about these tariffs, despite some positive demand signals from mainland China," said Phillip Nova's senior market analyst Priyanka Sachdeva.

t 0353 GMT, Brent trading volumes were at 8,550 lots for June, compared with 672,617 lots of open interest for the same month, ICE data on the LSEG pricing platform showed.

For weeks, Trump has touted April 2 as "Liberation Day," which would bring new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The (tariff) announcement could impact prices either to the upside or the down, although the balance of risk lies to the downside, given that weaker-than-expected tariff measures are unlikely to drive a significant rally in Brent, while stronger-than-expected measures could trigger a substantial selloff," BMI analysts said in a note.

Source : Reuters