Oil prices steady amid mixed global signals

July 16, 2025 (MLN): Oil prices steadied on Wednesday, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from U.S. tariffs.

Brent crude futures decreased by $0.25, or 0.36%, to $68.46 per barrel.

West Texas Intermediate (WTI) crude futures fell by $0.33, or 0.5%, to $66.19 per barrel by [3:20 pm] PST.

U.S. President Donald Trump has threatened to impose a 30% tariff on European Union imports beginning August 1, a move European officials claim could severely disrupt trade between the two major economies.

In response, the European Commission is reportedly readying retaliatory tariffs on U.S. goods worth €72 billion ($84.1bn), should negotiations falter.

Additionally, Trump warned on Monday of “very severe tariffs” against Russia within 50 days if a resolution to the Ukraine conflict is not reached.

Despite the announcement, markets showed little concern for supply disruptions, with PVM oil analyst Tamas Varga noting that oil continued drifting lower due to a muted reaction to the latest U.S. stance on Russia.

However, China's improved demand outlook helped limit oil’s losses, as CNBC reported.

Following maintenance, Chinese state-owned refiners are increasing output to meet expected higher third-quarter fuel demand and replenish diesel and gasoline inventories that are at multi-year lows, according to traders and analysts.

OPEC’s monthly report released Tuesday added further optimism, projecting stronger global economic performance in the second half of 2025.

It highlighted better-than-expected economic momentum in Brazil, China, and India, alongside a recovery in the U.S. and EU.

Meanwhile, American Petroleum Institute data showed that U.S. crude inventories rose by 839,000 barrels for the week ending July 11.

Gasoline and distillate stocks also increased by 1.93 million barrels and 828,000 barrels, respectively.

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