WASHINGTON (dpa-AFX) - Oil prices traded lower on Thursday, extending losses from the previous session as uncertainty prevailed over the potential effects of U.S. President Donald Trump's proposed tariffs and official data indicated a rise in U.S. inventories.
Easing worries about supply disruptions from Libya, the likelihood of increased U.S. production and a hawkish hold from the Federal Reserve also added to the selling pressure.
Benchmark Brent crude futures dipped half a percent to $75.21 in European trade while WTI crude futures were down half a percent at $72.26.
Uncertainty prevailed as a result of a lack of clarity on Trump's tariff policies, especially on Canada and Mexico, the two largest suppliers of crude oil to United States.
Trump still plans to make good on his promise to issue tariffs on Canada and Mexico on Saturday, White House spokeswoman Karoline Leavitt told reporters on Tuesday.
On Wednesday, Trump's nominee to run the Commerce Department, Howard Lutnick, said the countries can avoid the tariffs by closing borders to fentanyl.
He also accused China's DeepSeek of stealing U.S. technology to make the sophisticated artificial intelligence app that shook investors and erased many billions of dollars in market capitalization for American rivals.
Meanwhile, official data indicated an increase in inventories in the U.S. for the week ending January 24.
According to the Energy Information Administration, commercial crude oil inventories in the increased by 3.5 million barrels during the week while total motor gasoline inventories increased by 3 million barrels from last week.
Markets now look ahead to a ministerial meeting by the Organization of the Petroleum Exporting Countries and its allies, together called OPEC+, scheduled for Feb. 3.
The oil cartel is expected to go ahead with a plan to start returning 2.2 million bpd of voluntary production cuts with 122,000 bpd monthly increase from April 2025.
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