Oil Steadies as Industry Report Points to Gain in US Stockpiles

AbrahamSci/Tech2025-07-098500

(Bloomberg) -- Oil steadied as traders weighed signs of swelling US crude stockpiles and the fallout from President Donald Trump’s tariff regime.

Most Read from Bloomberg

Are Tourists Ruining Europe? How Locals Are Pushing Back
Can Americans Just Stop Building New Highways?
Denver City Hall Takes a Page From NASA
Philadelphia Trash Piles Up as Garbage Workers’ Strike Drags On
Singer Akon’s Failed Futuristic City in Senegal Ends Up a $1 Billion Resort

Brent held near $70 a barrel after a two-day gain, and West Texas Intermediate was around $68. US inventories rose by 7.1 million barrels last week, according to the American Petroleum Institute. That would be the largest increase since January if confirmed by government data on Wednesday.

Investors continue to monitor US trade policy and any impact on demand, with Trump vowing to push ahead with his tariff agenda in coming days and stressing he would not offer additional extensions on country-specific levies. The president indicated he would also impose new rates on copper imports.

Oil is lower this year, in part due to concerns around the impact from US tariffs and retaliatory measures from targeted countries. The recent conflict between Israel and Iran dialed up volatility, but a fragile truce is now in place, putting the focus back on global trade and OPEC+ supply policy.

In the US, choppy oil prices are limiting drilling, with the Energy Information Administration trimming its crude output growth estimate this year by about 50,000 barrels a day to 160,000 barrels a day. The rig count has declined steadily and is near four-year lows.

The oil market will likely shift to a surplus following a period of peak demand over summer due to accelerated OPEC+ output hikes, said Zhou Mi, an analyst at a research institute affiliated with Chaos Ternary Futures Co. Renewed concerns about tariffs could also dampen demand, he said.

--With assistance from Sarah Chen.