Brent crude falls on fears of shrinking US demand, trade tensions

Oil drilling rigs

Global benchmark crude oil prices fell today, Feb. 5, amid expectations of US inventories rising and the continued trade tensions between China and the US.

Brent crude was trading down 0.13% at $76.10 a barrel, at 09:28 am Makkah time. West Texas Intermediate (WTI) crude was trading at $72.70 a barrel.

The American Petroleum Institute report, issued on Feb. 4, stated that crude stocks in the US fell by more than five million barrels in the past week. Gasoline stocks increased by 5.4 million barrels, indicating weak demand for fuel in the world's largest economies.

US President Donald Trump signed an executive order on Feb. 4 to reactivate the "maximum pressure" policy on Iran that he followed during his first term, which includes measures to limit Tehran's oil exports and reduce them to zero to prevent it from developing a nuclear weapon, Reuters reported.

Oil markets are still suffering from turmoil due to China imposing customs duties of up to 15% on several American goods, including oil, coal and natural gas, in response to Washington targeting it with a comprehensive customs tariff.

Today, investors are awaiting the release of official data on oil inventories in the US from the Energy Information Administration, amid expectations of an increase of 2.4 million barrels over the past week.