Oil prices decline as markets assess potential impact of US trade war

Oil drilling rigs

Oil prices retreated on Wednesday as markets assessed the potential economic impact of the trade war launched by the US against various countries. However, crude found support from US inventory data.

Brent crude futures for September delivery settled by 0.30%, or 19 cents, lower at $68.52 a barrel.

WTI crude futures for August delivery edged down 0.20%, or 14 cents, to $66.38 a barrel.

Trade tensions continued to weigh on oil markets, with US President Donald Trump insisting on his protectionist agenda, which threatens the outlook for the global economy.

However, a drop in US crude inventories by 3.9 million barrels last week, according to data from the Energy Information Administration (EIA), signaled strong oil demand in the world’s largest economy, helping to limit losses in crude prices.