Global crude oil benchmarks continued their downward trend on Wednesday, recording a fourth consecutive day of losses as traders weighed the implications of ongoing trade negotiations and awaited fresh inventory data from the United States.
Brent crude dropped by 35 cents to $68.24 per barrel, while West Texas Intermediate slipped by 33 cents to $64.98.
The dip follows news of a new U.S.-Japan trade agreement that includes a 15% tariff on American imports from Japan. This announcement comes amid ongoing tensions between the U.S. and European Union, with the EU hinting at retaliatory tariffs on up to €93 billion worth of U.S. goods.
Vandana Hari, founder of Vanda Insights, said, “The slide (in prices) of the past three sessions appears to have abated but I don’t expect much of an upward impetus from news of the U.S.-Japan trade deal as the hurdles and delays being reported in talks with the EU and China will remain a drag on sentiment.”
On the sanctions front, the U.S. energy secretary announced that the United States is considering imposing sanctions on Russian oil to intensify pressure over the war in Ukraine. The EU has already implemented its 18th sanctions package, lowering the price ceiling on Russian crude exports.
In a separate development, crude exports from the Turkish port of Ceyhan have resumed after a temporary halt linked to contamination concerns.
