Uncertainty surrounding US trade policy weighs on oil prices on Wednesday, while data from the American Petroleum Institute (API) showing a drop in crude stocks limited the decline in prices.
The international benchmark Brent crude fell around 0.5% to $68 per barrel at 10.34 a.m. local time (0734 GMT), down from $68.04 at the previous session's close.
The US benchmark West Texas Intermediate (WTI) crude decreased by 0.9% to $65.25 per barrel, compared to $65.32 in the prior session.
The volatility in prices is largely driven by market uncertainty ahead of the August 1 implementation of new US tariffs targeting major trade partners.
US President Donald Trump announced the completion of a trade agreement with Japan, stating that the country would pay a 15% tariff on exports to the US. Sharing the news on his Truth Social account, Trump called it "perhaps the biggest deal ever made."
According to Trump, Japan plans to invest $550 billion in the US, with American interests reportedly retaining 90% of the profits. He claimed the deal would create hundreds of thousands of jobs.
On April 2, Trump had announced a 24% tariff on Japanese imports as part of a broader reciprocal tariff plan. In a recent letter sent to Japan, he indicated that a separate 25% sector-specific tariff would come into effect on August 1.
While the US-Japan agreement has raised hopes for similar resolutions with other countries, uncertainty over ongoing trade talks with key partners such as China and the European Union continues to weigh on markets.
US Treasury Secretary Scott Bessent said he will meet with Chinese officials next week in Stockholm to discuss trade matters, including a possible extension of the tariff deferral period for China.
Meanwhile, the API reported a 577,000 barrel decline in US crude inventories last week, signaling a rebound in demand in the world's top oil consumer.
Official inventory data from the US Energy Information Administration is expected later today.
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr
