Oil prices held steady on Wednesday as investors weighed rising U.S. gasoline demand, renewed attacks on Red Sea shipping, and the impact of looming U.S. copper tariffs. Brent crude edged up 4 cents to settle at $70.19 a barrel, while West Texas Intermediate (WTI) crude gained 5 cents to close at $68.38—both little changed from the previous day.
U.S. crude inventories unexpectedly rose by 7.1 million barrels last week, according to the Energy Information Administration, compared to forecasts for a 2.1 million-barrel draw. However, gasoline demand climbed 6% to 9.2 million barrels per day, providing a bullish counterbalance. Analysts noted that consumer demand appears strong heading into the peak of summer travel.
Geopolitical tension returned to the Red Sea, where attacks by Yemen’s Iran-aligned Houthi rebels sank two ships in recent days, leaving 15 crew members missing. The renewed threat has sparked concerns about disruptions in one of the world’s key maritime trade routes.
On the supply side, OPEC+ producers are preparing for another major output increase in September. The 548,000-barrel-per-day hike planned for August is part of a broader strategy to unwind voluntary production cuts and accommodate the UAE’s higher quota. Despite these increases, officials including the UAE’s energy minister say inventories are not building, suggesting strong global demand.
Meanwhile, President Trump announced a 50% tariff on copper, aimed at boosting domestic production, while extending the deadline for some other tariffs to August 1. The move raised hopes for continued trade negotiations but also added uncertainty for markets already sensitive to policy shifts.