Oil prices were relatively stable, taking a break from the recent surge as traders brace for upcoming US tariff announcements.

Brent oil hovered below $75 per barrel, having dipped 0.4% the previous day, while West Texas Intermediate remained above $71. President Donald Trump is anticipated to reveal his tariff plans later that day, indicating that the new tariffs will be implemented promptly. Various proposals, including a tiered tariff system and a personalized reciprocal arrangement, are being considered.

Despite the close approach of the announcement, broader tariff measures are still on the table. Following a strong rally in the previous month, market participants are exercising caution and reducing their exposures in anticipation of potential market fluctuations resulting from the tariff announcement.

Concerns are mounting over the impact of tariffs on global growth, in addition to other factors like sanctions affecting oil supply from countries like Russia and Iran. OPEC and its allies are boosting production levels this month, heightening apprehensions about a potential oversupply later this year.

Moreover, the US is contemplating tightening sanctions on Russia, with a bipartisan group of senators proposing a sanctions package against the country if certain conditions related to Ukraine are not met.

In other news, the American Petroleum Institute revealed a substantial increase of 6 million barrels in US crude inventories last week. If confirmed by official data, this build-up at the Cushing, Oklahoma delivery point for WTI could be the largest since January 2023.

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