Oil prices were steady on Wednesday (July 16), as signs of rising Chinese crude consumption were offset by investor caution about the broader economic impact of US tariffs.

Prices have fluctuated within a tight range, as signs of steady demand from increased travel during the Northern Hemisphere summer season have competed with concerns that US tariffs on trading partners will slow economic growth and fuel consumption.

Brent crude futures fell 17 cents, or 0.3%, to $68.54 a barrel at 08:44 GMT. US West Texas Intermediate crude futures fell 11 cents, or 0.2%, to $66.41. US President Donald Trump has threatened 30% tariffs on imports from the European Union starting August 1, a level European officials say is unacceptable and would end normal trade between the world's two largest markets.

The European Commission is preparing to target 72 billion euros ($84.1 billion) worth of U.S. goods for possible tariffs if talks with Washington to reach a trade deal fail. Trump also said Monday that the United States would impose "very heavy tariffs" on Russia within 50 days if there is no agreement to end the war in Ukraine.

"The latest U.S. attacks on Russia failed to rekindle concerns about persistent supply disruptions, and as a result, oil prices continued to weaken yesterday," PVM oil analyst Tamas Varga said in a note. However, an improving demand outlook from China limited losses.

Chinese state-owned refineries increased production after completing maintenance to meet higher third-quarter fuel demand and to rebuild diesel and gasoline stocks that were at their lowest in years, traders and analysts said.

Meanwhile, OPEC's monthly report on Tuesday forecast that the global economy would improve in the second half of the year, boosting the oil demand outlook. Brazil, China, and India exceeded expectations, while the U.S. and the European Union are recovering from last year, he added.

U.S. crude oil, distillate, and gasoline inventories rose last week, market sources said, citing data from the American Petroleum Institute (API) on Tuesday.

Crude oil inventories rose by 839,000 barrels in the week ending July 11, the sources said. Gasoline inventories rose by 1.93 million barrels, and distillate stocks rose by 828,000 barrels, they added. (alg)

Source: Reuters