Brent crude futures settled down $1.32, or 1.96%, at $66.12 per barrel. U.S. West Texas Intermediate (WTI) crude dropped $1.40, or 2.2%, to $62.27. Earlier in the session, Brent touched a high of $68.65—its highest level since April 4.
Tensions within OPEC+ have flared recently, with some countries exceeding their quotas. Kazakhstan, though not an OPEC member but a part of the broader OPEC+ alliance, has drawn scrutiny for pumping above its assigned levels. In response, Kazakhstan’s Energy Ministry reaffirmed its commitment to market stability and constructive cooperation.
Oil prices found some support from U.S. inventory data. Government figures showed a surprise build in crude stockpiles, but gasoline and distillate inventories fell more than expected. “We saw another bullish product inventory decline during build season,” said Josh Young, CIO at Bison Interests. “It doesn’t seem to reflect a demand slowdown just yet from the trade tensions.”
Meanwhile, tariff-related news also helped cushion oil’s decline. The Wall Street Journal reported that tariffs may be cut to between 50% and 65%. U.S. Treasury Secretary Scott Bessent echoed the sentiment, noting that excessively high tariffs would need to come down for meaningful trade talks to resume.
Investor sentiment was further stabilized after President Trump appeared to soften his stance on Federal Reserve Chair Jerome Powell, backing away from recent threats to remove him amid ongoing criticism over interest rate policy.
In the background, the U.S. also announced additional sanctions on a prominent Iranian shipping magnate and his network, which handles hundreds of millions of dollars’ worth of crude and liquefied petroleum gas, adding to ongoing geopolitical supply risks.