By Laila Kearney
(Reuters) – Oil prices were little changed on Wednesday after volatile trading in the previous session as investors shrugged off the impact of China’s tariffs on U.S. energy imports though President Donald Trump’s renewed push to eliminate Iranian crude exports provided some support.
Brent crude futures were down 18 cents, or 0.24%, at $76.02 a barrel by 0210 GMT. U.S. West Texas Intermediate crude (WTI) lost 9 cents, or 0.12%, to $72.61.
Oil on Tuesday traded in a wide range, with WTI falling at one point by 3%, its lowest since Dec. 31, after China announced tariffs on U.S. imports of oil, liquefied natural gas and coal in retaliation to U.S. levies on Chinese exports.
Prices rebounded, however, after Trump restored the “maximum pressure” campaign on Iran to curtail its nuclear programme he enacted in his first term that cut Iranian crude exports to zero.
The impact of China’s retaliatory tariffs on energy prices will be limited “given that neither global supply nor demand of these commodities are changed by China’s tariffs,” analysts at Goldman Sachs said in a note on Tuesday.
Both countries will be able to find alternative markets, the note said.
While Trump said he was open to a deal with Iran and expressed a willingness to talk to the Iranian leader when he signed the presidential memorandum re-imposing Washington’s tough policy on Iran, the plan could impact about 1.5 million barrels per day of oil that the country exports, analysts at ANZ said on Wednesday, citing shiptracking data.
Prices were also pressured by rising crude and fuel stockpiles in the U.S., the world’s biggest oil consumer.
Crude stocks rose by 5.03 million barrels in the week ended Jan. 31, according to market sources, citing American Petroleum Institute figures.
Gasoline inventories rose by 5.43 million barrels, and distillate stocks fell by 6.98 million barrels, the API reported, according to the sources.
Official U.S. government oil inventory data is due to be released on Wednesday.
(Reporting by Laila Kearney; Editing by Christian Schmollinger)
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