Oil Futures Mixed Despite Crude Oil Build Last Week


   
Maria Eugenia Garcia
DTN Energy Editor

    

    

   HOUSTON, TX (DTN) -- Oil futures settled mixed on Wednesday after Energy 
Information Administration data confirmed a build of crude oil inventories in 
the United States last week, coupled with the announced imposition of a 50% 
tariff on U.S. copper imports.

   The front-month NYMEX WTI futures contract edged up 5cts to $68.38 bbl 
settlement, while the September ICE Brent futures contract added 4cts to $70.19 
bbl settlement. August RBOB futures contract per gallon rose by $0.0029 to 
settle at $2.1879 gallon. In contrast, the ULSD futures contract for August 
delivery fell by $0.0321 to $2.4092 gallon settlement.  

   The U.S. dollar strengthened by 0.028 points to 97.200, compared to a basket 
of foreign currencies.  

   This morning, the EIA reported commercial crude oil inventories in the U.S. 
rose by 7.1 million bbl to 426.0 million bbl in the week ending July 4. This 
was in line with the volume reported by API yesterday (7/8) for the same week 
profiled.

   EIA data show gasoline stocks dropped 2.7 million bbl week-over-week to 
229.5 million bbl. The figure was lower than the 2.2 million bbl increase 
reported by API for the week ending July 4.

   Distillate fuel inventory decreased 800,000 bbl to 102.8 million bbl last 
week, according to EIA, which was on par with the decline reported by API for 
same week.

   Separately, U.S. President Trump on Tuesday announced a 50% tariff on copper 
imports, catching many market observers by surprise. At the same time, the 
president dismissed the possibility of another extension of the August 1 tariff 
deadline. The 90-day tariff freeze, which was set to expire today, has recently 
been postponed to Aug. 1, at which point new, significantly higher import 
duties will be levied by the U.S. government.

   Higher tariffs are set to curb oil demand growth at a time when OPEC plans 
to significantly ramp up production, elevating global oversupply concerns. 
Eight member states shouldering some 2.2 million bpd in voluntary production 
cuts, in place since 2023, aim to fully unwind those by the end of September.




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