Oil edges higher as market awaits fresh US tariffs

Oil prices edged higher on Wednesday as market participants braced for U.S. reciprocal tariffs due to be announced at 4 p.m. ET (2000 GMT) that will likely increase investor uncertainty and the risk of a global trade war, and may dampen demand for crude.

Brent futures were up 42 cents, or 0.6%, at $74.91 a barrel by 12:51 p.m. EDT (1651 GMT). U.S. West Texas Intermediate crude futures gained 53 cents, or 0.7%, to $71.73.

Investors shrugged off mostly bearish U.S. government crude inventory data. U.S. crude inventories posted a surprisingly large build of about 6.2 million barrels last week, Energy Information Administration data showed. [EIA/S]

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"The report was bearish in my view, with larger crude inventories and total petroleum inventories rising," UBS analyst Giovanni Staunovo said. "But the market took it as neutral, as the crude build is driven by a sharp increase in Canadian crude imports, likely ahead of the fear of the introduction of new tariffs."

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no details on their size or scope.