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Oil Prices Steady As Markets Weigh Trump's Tariff Threats And US Stock Gains
Thursday, 31 July 2025 16:03 WIB | OIL |Minyak WTIbrent oil

Oil prices were little changed on Thursday (July 31st) as investors weighed supply risks stemming from US President Donald Trump's push for a swift resolution to the war in Ukraine through additional tariffs, while a surprise increase in US crude stockpiles weighed on prices.

Brent crude futures for September, which expire on Thursday, rose 4 cents, or 0.05%, to $73.28 a barrel at 08:12 GMT. US West Texas Intermediate crude for September also rose 4 cents, or 0.06%, to $70.04. Both benchmarks rose 1% on Wednesday.

"We're looking for more clarity on the nature of any new tariffs or sanctions against Russia," said Harry Tchiliguirian of Onyx Capital Group. The US president's history of implementing policies and then changing them days later has left traders and analysts hesitant to price them in, Tchiliguirian added.

Trump said he would begin imposing measures against Russia, including 100% secondary tariffs on its trading partners, if Russia does not make progress in ending the war in Ukraine within 10-12 days, moving up the previous deadline by 50 days. The US has also warned China, Russia's largest oil buyer, that it could face significant tariffs if it continues to purchase.

On Wednesday, the US Treasury Department announced new sanctions on more than 115 individuals, entities, and vessels linked to Iran, escalating the Trump administration's "maximum pressure" campaign following the bombing of Iranian nuclear sites in June. Meanwhile, US crude oil inventories rose by 7.7 million barrels to 426.7 million barrels in the week ending July 25, driven by declining exports, according to the Energy Information Administration (EIA) on Wednesday. Analysts had expected a decline of 1.3 million barrels.

Gasoline stocks fell by 2.7 million barrels to 228.4 million barrels, far exceeding forecasts for a 600,000-barrel decline. "US inventory data showed a surprise increase in crude oil stocks, but a larger-than-expected decline in gasoline supported the outlook for strong driving season demand, thus having a neutral impact on the oil market," said Fujitomi Securities analyst Toshitaka Tazawa. (alg)

Source: Reuters

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