Oil prices fell by about 1% on Wednesday as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from U.S. tariffs.
Prices have oscillated in a tight range as signs of steady demand from an increase in travel during the Northern Hemisphere summer have competed with concerns that U.S. tariffs on trading partners will slow economic growth and fuel consumption.
Brent crude futures fell 62 cents, or 0.9%, to $68.09 a barrel by 1317 GMT. U.S. West Texas Intermediate crude futures were down 72 cents, or 1.1%, at $65.80.
U.S. President Donald Trump has threatened a 30% tariff on imports from the European Union from August 1, a level European officials say is unacceptable and would end normal trade between two of the world’s largest markets.
The European Commission is preparing to target 72 billion euros ($84.1 billion) of U.S. goods for possible tariffs if talks with Washington fail to secure a trade agreement.
Trump also said on Monday that the United States will impose “very severe tariffs” on Russia in 50 days if there is no deal to stop the war in Ukraine.
“The latest U.S. salvo towards Russia failed to reignite fears of sustained supply disruption, and as a result, oil continued to drift lower yesterday,” PVM oil analyst Tamas Varga said in a note.