Oil prices steadied on Wednesday as concerns about a deepening trade spat between the United States and China offset record Chinese imports and tighter global supplies.
The U.S. Energy Information Administration reported the nation’s stockpiles of crude oil fell by four million barrels in the week through May 3, thus giving the market a boost.
Brent crude oil futures were up 18 cents at $70.06 U.S. per barrel mid-morning Wednesday U.S. West Texas Intermediate crude futures rose 37 cents to $61.77 U.S. per barrel.
Oil prices have fallen this week due to announcements from Washington that the United States would further raise tariffs on Chinese goods on Friday. The move came after China backtracked on a wide range of core U.S. demands.
On Tuesday, EIA cut its 2019 world oil demand growth forecast by 20,000 barrels per day (bpd) to 1.38 million bpd.
With U.S. sanctions on Iran and Venezuela in place, analysts said global oil markets remained tight.
Iran has said it will defy the sanctions. It also said it would stop implementing some commitments under a 2015 nuclear deal if it was not allowed to export oil.
Most analysts expect Iran’s crude exports to fall to little more than 500,000 bpd, down from around one million bpd in April, as governments largely bow to U.S. pressure.
Washington has also slapped sanctions on Venezuelan oil exports.
