Oil prices drop as investors await tariff clarity

Oil prices edged lower on Wednesday, July 9, 2025, as investors await clarity on new United States tariffs and expectations of rising crude inventories in the U.S.

Brent crude futures slipped 15 cents, or 0.2%, to $70 a barrel by 0601 GMT, while U.S. West Texas Intermediate crude fell 16 cents, or 0.2%, to $68.17 a barrel.

U.S. President Donald Trump’s latest tariff delay provided some hope to major trade partners Japan, South Korea, and the European Union that deals to ease duties could still be reached, while bewildering some smaller exporters such as South Africa, and leaving companies with no clarity on the path forward.

Trump pushed Wednesday’s previous deadline to August 1, a date he said on Tuesday was final, declaring: “No extensions will be granted.”

He added that he would impose a 50% tariff on imported copper and soon introduce long-threatened levies on semiconductors and pharmaceuticals, broadening a trade war that has rattled markets worldwide.

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“Bearish (price) drivers include uncertainties surrounding the implementation of various types of U.S. tariffs (country-specific and sector-specific goods-based) and potential production hikes from OPEC+,” said OANDA senior market analyst Kelvin Wong.

There is concern that the tariffs could curb demand for oil, and while there was strong travel demand during the U.S. July 4 holiday weekend, data from industry sources showed possible crude inventory builds in the U.S. of around 7.1 million barrels, though fuel products’ stocks were lower.

“Numbers from the API overnight were bearish for oil,” said ING analysts in a client note, adding that “changes in refined products were more constructive.”

Official data from the U.S. Energy Information Administration is scheduled for 1430 GMT today, Reuters reported.

The Star